German Shipping Faces Challenges Amid Rising Protectionism in Global Trade

As protectionist tendencies in global trade policies continue to escalate, the German Shipowners’ Association (VDR) has raised concerns about the impact on German shipping. The VDR has warned that the pursuit of national interests through restrictive measures should not jeopardize the free flow of global trade.

The implementation of increased tariffs and trade barriers not only disrupts supply chains but also leads to higher transport costs for shipping companies. This situation poses challenges such as longer trade routes, elevated operational expenses, and uncertainty in global goods transportation, as highlighted by the association.

The recent protectionist announcements from the United States, including the imposition of 25% tariffs on European goods and the plan to levy substantial fees on China-built ships entering US ports, have further exacerbated the uncertainties faced by the German and global merchant fleet, according to the VDR.

The Office of the United States Trade Representative (USTR) has proposed charging up to $1.5 million for Chinese-built vessels entering US ports to address China’s dominance in the shipping, shipbuilding, and logistics sectors. This measure, along with other service fees, applies to all vessels constructed in China, irrespective of the international shipping companies operating them, and restricts Chinese maritime transport operators.

“The US government’s potential withdrawal from security commitments raises the need for Germany to secure its own supply in the long term. Strengthening the national merchant fleet is crucial in response to the evolving global trade and security landscape,” emphasized the VDR.

The association also highlighted the impact of rising tensions on key international maritime trade routes, which not only affect German merchant ships but also impede critical sea lanes for German imports and exports.

“As a leading export nation dependent on secure and open trade routes, Germany must prioritize a consistent national maritime security strategy, enhanced naval presence, and closer collaboration between security authorities and the merchant fleet,” stressed Martin Kröger, CEO of VDR.

Germany, with around 62 percent of exports and 60 percent of imports handled by sea, boasts nearly 290 shipping companies, a fleet of 1,764 ships, and a gross tonnage of 47.4 million, positioning the country as the seventh-largest merchant shipping nation globally.