[By Guancha Observer Network, Chen Sijia] The Office of the United States Trade Representative recently issued a notice, announcing that it would impose high "port fees" on ships built and operated in China. These measures will take effect from mid-October this year. Due to the widespread use of Chinese-built vessels in the fleets of major global shipping companies, this move has raised concerns among multiple industries in the United States.

According to a report by the Financial Times on April 27, the US liquefied natural gas (LNG) industry recently warned the Trump administration that currently the US does not have the capability to build LNG ships. Imposing "port fees" on Chinese ships cannot promote domestic shipbuilding in the US but will instead damage the dominant position of US producers in the global LNG industry and undermine America's energy strategy.

The American Petroleum Institute (API) expressed in a lobbying letter to the US government this week that US LNG producers are unable to comply with the new regulations set by the Office of the US Trade Representative. There are currently no LNG ships built in the US, and US shipyards do not have the capacity to construct new LNG ships before 2029. Therefore, the "port fee" regulation will significantly increase the cost of vessels.

The API is concerned that the US government may take further measures in the future, using similar trade tools to suspend export licenses. The organization warned in the letter that these rules will only harm the dominant position of US producers in the LNG industry and are detrimental to the US strategy of consolidating its status as a global energy superpower.

LNG carrier "Legend Sun" built by Hudong-Zhonghua Shipbuilding under China State Shipbuilding Corporation, Visual China

Aaron Padilla, vice president of corporate policy at API, told the Financial Times that API understands the importance of boosting the US shipbuilding industry but is concerned about the Trump administration's regulations. Padilla said, "We will continue to work with the Office of the US Trade Representative and the Department of Energy to support policies that benefit consumers and enhance America's energy dominance."

The US LNG industry also requested the Trump administration to exempt gasoline, liquefied petroleum gas, and other crude oil and refined oil products from maritime tariffs. They believe such fees will disrupt supply chains and harm industry competitiveness.

Charlie Riedl, executive director of the Center for Liquefied Natural Gas, stated that these measures could disrupt the stability of long-term contracts, increase costs for global buyers, and threaten the US position as a major LNG exporter. "This is why we urge the Office of the US Trade Representative to fully exempt measures related to LNG and its transportation vessels."

The Financial Times reported that the US surpassed Australia in 2023 to become the world's largest LNG exporter, exporting approximately 337 million cubic meters of LNG per day last year. The industry generates $34 billion in exports annually for the US and has become a core component of the Trump administration's "energy dominance" agenda.

On April 17, the Office of the US Trade Representative announced that starting from mid-October, a "port fee" of $50 per net ton per voyage will be charged for ships owned or operated by Chinese entities. This fee will increase by $30 per net ton annually over the next three years. For vessels built in China used by operators from other countries, the charge will be $18 per net ton or $120 per container, with fees increasing annually over the next three years as well.

The US Trade Representative's Office also announced that the US government will initiate a second phase of measures after three years to restrict the use of foreign ships transporting LNG, in order to boost the US shipbuilding industry.

Due to the current lack of capacity to build LNG ships in the US, Trump's plan has faced skepticism from industry insiders. S&P Global reported on April 23 that statistics show that currently, Chinese-built ships account for about 7% of the global active LNG fleet, but Chinese shipyards are expanding their market share, accounting for approximately 28% of LNG ship orders.

Ira Joseph, a researcher at Columbia University's Center for Global Energy Policy, believes that the US cannot build new LNG ships before 2029. "Shipbuilders now lack experience and technology to do this," he said.

Charlie Riedl, executive director of the Center for Liquefied Natural Gas, also stated that the requirement put forth by the Trump administration to transport US LNG using ships built in the US and flying the US flag is simply unfeasible. "We don't have such ships now, and building them would take decades, making it impossible for our industry to comply with such regulations," he said.

In response to the announcement of the "port fee" by the Trump administration, Chinese Foreign Ministry spokesperson Lin Jian stated on April 18 that measures such as levying port fees and imposing tariffs on loading and unloading equipment are self-destructive. Such measures not only drive up global maritime costs and disrupt the stability of global supply chains but also increase inflationary pressures within the US, harming the interests of American consumers and businesses. Ultimately, they cannot revitalize the US shipbuilding industry. We urge the US to respect facts and multilateral rules and immediately stop these erroneous actions. China will take necessary measures to defend its legitimate rights and interests.

This article is an exclusive contribution from the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7497972365750780452/

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