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New maritime policy! Seller costs may rise again
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Time of issue:
2025-02-28 17:57
In 2025, the United States implemented a series of new policies and measures targeting the maritime sector, primarily encompassing the following aspects:
1. Section 301 Restrictions on China's Maritime, Logistics, and Shipbuilding Industries
On February 21, 2025, the Office of the United States Trade Representative (USTR) issued a notice outlining a series of restrictive measures targeting China's "dominant position" in the maritime, logistics, and shipbuilding sectors. These measures include:
• Charges for Chinese Ship Operators: A maximum charge of $1 million per voyage entering US ports, or $1,000 per net registered ton of the vessel's capacity, whichever is higher.
• Charges for Operators Owning Vessels Made in China: Charges are levied based on the percentage of vessels in the fleet manufactured in China, according to the following scale:
• Over 50%: A maximum single charge of $1.5 million;
• 25%-50%: A maximum single charge of $750,000;
• 0%-25%: A maximum single charge of $500,000.
• Charges for Operators Ordering Vessels from China: Charges are levied based on the percentage of vessels ordered from Chinese shipyards:
• Over 50%: A maximum single charge of $1 million;
• 25%-50%: A maximum single charge of $750,000;
• 0%-25%: A maximum single charge of $500,000.
• Fee Reductions for Vessels Built in the US: Operators using vessels built in the US for transportation will receive certain fee reductions.
Charges for New Ship Orders from China • Charges are levied based on the percentage of new vessels ordered from Chinese shipyards:
• Over 50%: A single charge of $1 million;
• 25%-50%: A single charge of $750,000;
• 0%-25%: A single charge of $500,000.
• Impact: Major global liner companies such as Mediterranean Shipping Company (MSC) and Maersk, which have placed significant orders for newbuilds in China, will also face substantial fees.
• Transportation Restrictions: A phased requirement for US cargo to be transported by US vessels. Starting on the effective date, at least 1% of export cargo must be transported by US-flagged operators; this percentage may increase over time.
“National Goods, National Shipping” Policy
• A certain percentage of US export cargo must be transported by US-flagged vessels:
• In the first year of regulation implementation, at least **1%** of US export goods must be transported by US-flagged, US-operated carriers;
• Seven years and beyond, at least **15% of US export goods must be transported by US-flagged, US-operated carriers, of which 5%** must be transported by US-built vessels.
• Impact: US domestic shipbuilding capacity is limited and unable to meet this demand, potentially leading to supply chain disruptions.
2. The SHIPS for America Act
On December 19, 2024, US lawmakers submitted the SHIPS for America Act to Congress, aiming to revitalize the US shipbuilding and maritime industries. The main contents of the bill include:
• Gradually Increasing the Proportion of US-Flagged Vessel Transportation: Within 15 years of the bill's enactment, a certain proportion of all goods imported from China to the US must be transported by US-flagged vessels. This proportion starts at 1% in the fifth year after enactment, increasing by 1% annually to reach 10% in the fourteenth year. Importers who fail to meet this standard will be fined.
• Revitalizing the US Shipbuilding Industry: The bill proposes to strengthen US shipbuilding capacity and rebuild the maritime workforce through regulatory reforms and financial support (such as tax credits).
• Prioritizing US-Flagged Vessels: The transportation of US government goods will be entirely undertaken by US-flagged vessels, which will also be given priority in port waiting times.
3. Other Relevant Measures
• Reducing Reliance on Chinese Logistics Platforms: The USTR proposes reducing reliance on the National Transportation and Logistics Public Information Platform (LOGINK) and related platforms, restricting their access to US shipping data.
• Investigating Anti-Competitive Behavior by Chinese Shipping Companies: The US plans to investigate alleged anti-competitive behavior by Chinese shipping companies and restrict their operations in US ports.
4. Continuing Impact of the 2022 Maritime Reform Act
In June 2022, the US passed the Ocean Shipping Reform Act, aimed at strengthening enforcement and oversight of shipping companies. The Act requires shipping companies to report their capacity and actual container volume monthly, prohibits unreasonable refusal of US export cargo, and restricts practices that raise prices by reducing capacity.
Impact Analysis
• Impact on the Chinese Shipping Industry: The new US maritime policies will significantly increase the operating costs of Chinese shipping companies, reducing their competitiveness in the US market. For large shipping companies such as COSCO, rising costs and reduced market share are major challenges.
• Impact on the Global Shipping Industry: The US restrictions could escalate trade friction, leading to higher global shipping costs and increased risks of supply chain disruptions.
• Impact on the US Itself: While the US aims to revitalize its shipping and shipbuilding industries through these measures, its domestic shipbuilding capacity is limited, making it difficult to meet demand in the short term, potentially leading to decreased logistics efficiency.
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