A plan proposed by the Trump administration to introduce fees on the use of Chinese commercial ships has raised concerns within the shipping industry. The plan, which includes fees on Chinese-built ships entering American ports and a mandate for a portion of US products to be transported on American vessels, could potentially have damaging effects on the US economy and may not necessarily reverse China’s dominance in shipbuilding.

The Office of the US Trade Representative has put forth these proposals, which are set to be discussed at a hearing on March 24. However, industry experts fear that if implemented as is, the plan could disrupt the shipping industry significantly.

Bimco, a Denmark-based trade group representing vessel owners globally, including those in the US and China, has expressed concerns about the potential consequences of these fees. They argue that such fees would ultimately lead to higher prices for US consumers, jeopardize jobs at shipyards, and pose a threat to US energy exports.

Lars Robert Pedersen, Bimco’s deputy secretary general and director of regulatory affairs, stated in a letter that the proposed actions could result in increased transport costs for imports and exports, negatively impacting the broader US economy. He also noted that the impact on China’s dominance in the industry is uncertain.

Most vessel owners, according to Bimco, would likely try to avoid paying these fees by reducing the frequency of their voyages to the US. This could lead to higher shipping costs, port congestion, and potential job losses at ports that become less attractive for foreign trade.

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