US reveals new port costs on Beijing-linked ships to ‘reverse Chinese dominance’

US reveals new port costs on Beijing-linked ships to ‘reverse Chinese dominance’

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The United States has unveiled new port costs on Chinese built and operated ships in an attempt to stimulate the domestic shipbuilding industry and to curb the dominance of China in the sector.

The move – which comes from a probe that is launched under the earlier administration – comes when the US and China are locked up in a large trade war on the rates of President Donald Trump and can further escalate the tensions.

“Ships and shipment are vital for US economic security and free trade flow,” said American trade representative Jamieson Geer on Thursday in a statement announcing the new reimbursements, most of which start mid -October.

“The actions of the Trump government will start to turn Chinese dominance, tackle threats for the American supply chain and send a question signal for ships built by the US,” said Greer.

According to the new rule, per tonnage or per container costs apply to the American journey of each Chinese-connected ship, and not in every port like some in the industry had been worried.

The reimbursement is assessed up to five times a year and can be waived if the owner places an order for a ship built in the US.

Dominant after the Second World War, the American shipbuilding industry has gradually fallen and is now good for only 0.1% of the worldwide output.

The sector is dominated by Asia, in which China was built almost half of all launched ships, before South Korea and Japan. The three countries account for more than 95% of civil shipbuilding, according to UN figures.

There will be individual reimbursements for ships in Chinese and Chinese ships built, and both will gradually increase in the following years.

For ships with Chinese, the reimbursement starts at $ 18 per net ton (NT) or $ 120 per container-what means that a ship with 15,000 containers can increase a fee of $ 1.8 million.

American groups that represent 30 industries had expressed concern about the risks that such reimbursements could have on the prices of imported products in March.

A company investigated through the groups that it is concerned that proposed reimbursements, in addition to rates for China and other countries, as well as tasks in the field of steel and aluminum, “would put extraordinary pressure on American retailers”.

All non-us-built authority are also affected with a fee that starts in 180 days.

Washington also introduces new reimbursements for carriers of liquid gas (LNG), although they are not in force for three years.

A fact sheet at the announcement said that the reimbursements will not cover “Great lakes or Caribbean shipping, shipping to and to American areas, or bulk products export on ships arriving in the United States”.

In addition to the reimbursements, Greer also announced proposed rates for some ship-to-coast cranes and on Chinese freight handling equipment.

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