US tariffs could disrupt global shipping

In an effort to revive its declining shipbuilding industry, the Office of the U.S. Trade Representative, USTR) restrictive measures targeting China's shipping and related industries to limit its dominance in global shipping, logistics and shipbuilding. These measures include the imposition of fees on Chinese-flagged ship operators, operators using Chinese ships, and those ordering ships from Chinese shipyards. Fees can reach up to USD 1.5 million per ship or voyage.

Conversely, operators using US-built ships will receive a discount of up to $1 million per voyage. In addition, a cargo quota system will be introduced that will require 5 % of US export cargo to be carried by US-flagged ships within three years. Within seven years, this is to increase to 15 %, with 5 % of cargo to be carried by US-built ships. These measures are intended to encourage the use of domestically-built ships and reduce dependence on Chinese maritime services.

Critics say the proposed measures - punitive tariffs, port fees on Chinese ships and restrictions on shipping - could disrupt global supply chains, increase logistics costs and ultimately harm the US itself.

The financial burden of these measures is likely to fall on US consumers. Analysts estimate that additional tariffs and service fees could increase the cost of shipping between China and the US by 15 %, which would lead to inflation and make consumer goods imported from Asia more expensive. This outcome would run counter to the US government's efforts to tame inflation and create a counterproductive cycle.

Moreover, the policy could lead to the disintegration of global maritime alliances. Many of the most modern LNG carriers, bulk carriers and container ships are now being built in China due to their efficiency and lower costs. Shipping companies such as Maersk, Mediterranean Shipping Company (MSC) and CMA CGM rely heavily on Chinese ships. Because of high fees in US ports, these companies can divert cargo to alternative hubs in Canada, Mexico or Latin America and bypass the US altogether. This shift could lead to reduced traffic at U.S. ports, job losses in the logistics sector, and higher costs for U.S. importers and exporters.

The basis of the US strategy is a nostalgic effort to revive an industry that has been in decline since the 1970s, when the US was the world leader in shipbuilding, producing over 70 ships a year. Today, the industry is a shadow of its former glory, weakened by protectionist policies such as the Jones Act, which mandates that goods transported between US ports must be carried on ships built and operated by Americans. Such measures increase the cost of domestic production and reduce competitiveness.

The U.S. fleet of container and bulk carriers represents less than 1.4 % and 1 % of global capacity, respectively. Moreover, labor costs in U.S. shipyards are approximately $98 per hour - four times higher than in China - making domestic shipyards significantly less competitive.

If the US is serious about rebuilding its maritime industry, it should prioritise technological innovation, workforce development and global cooperation over imposing trade restrictions. Countries like South Korea and Japan, which maintain strong shipbuilding sectors, are focusing on innovation and strategic partnerships instead of punitive tariffs. Their approach ensures competitiveness without disrupting world trade.

CMG / gnews.cz-jav