The United States Trade Representative (USTR) has proposed new restrictions on Chinese-built and Chinese-operated vessels, aiming to strengthen the U.S. maritime industry. If implemented, these changes could significantly impact shipping costs, trade routes, and supply chains worldwide.
What’s Changing?
- Higher Costs for Chinese Vessels – Up to $1 million per U.S. port call for Chinese-operated vessels and up to $1.5 million for carriers with fleets that include Chinese-built vessels.
- Stricter Cargo Preference Rules – Gradual increase in the share of U.S. goods transported on U.S.-flagged vessels, reaching 15% within seven years.
- Impact Across Global Trade – Fees are based on the percentage of Chinese-built vessels in a carrier’s fleet, meaning this could affect all trade lanes, not just shipments from China.
How This Affects Businesses
- Rising Freight Costs – As carriers adjust to new fees, shippers may see increased transportation expenses.
- Changes in Shipping Routes – Some operators may shift away from U.S. ports, creating capacity challenges and potential delays.
- New Market Dynamics – The shift may benefit non-Chinese-built fleets while prompting retaliatory trade measures from China.
How LEMAN Can Help
LEMAN is closely monitoring these developments and encourages businesses to submit comments to the USTR before the March 24 deadline to help shape the final ruling.
Contact us to discuss how these changes may impact your supply chain.