【By Liu Bai, Observer】Trump administration's ambitious efforts to suppress China's shipbuilding industry have ultimately attracted few supporters. According to a report by the Center for Strategic and International Studies (CSIS) published by Reuters on September 25, despite U.S. tariffs on Chinese ships as so-called port "service fees" aimed at curbing China's maritime dominance, global shipping companies are still rapidly ordering merchant ships from Chinese shipyards.

According to CSIS's analysis of data from S&P Global, in the first eight months of this year, Chinese shipyards secured 53% of the global shipbuilding orders by tonnage.

CSIS said this proportion remained the same as in 2023, which was the year when the Office of the U.S. Trade Representative (USTR) had not yet initiated a maritime investigation targeting Chinese ships to impose port "service fees".

"Shipping companies are basically still operating as usual," said Brian Hart, a researcher with the "China Power Project" at CSIS and one of the authors of the report, "so far, these policies have not significantly caused shipping companies to shift their orders away from China."

In 2024, China's share of global shipbuilding orders once rose to 73%, indicating that ship owners were locking in contracts ahead of potential USTR restrictions.

Starting October 14, vessels built in China or operated or owned by Chinese entities will need to pay a fee upon their first entry into U.S. ports. Analysts estimate that this fee could exceed $1 million for container ships carrying more than 10,000 TEU, and it is planned to increase annually until 2028.

This port fee targeting vessels related to China is part of the broader effort by the Trump administration to revitalize the domestic shipbuilding industry and weaken China's growing maritime strength.

However, the report candidly admits that it is not easy to catch up with state-supported Chinese shipyards. Military and industry analysts say that in 2023, U.S. shipyards built fewer than 10 commercial ships, while China built over 1,000.

On June 20, Shanghai, the delivery of China's first 16,000 TEU methanol dual-fuel container ship. Visual China

Over the past two decades, China has risen to become the world's top shipbuilding country, with its largest shipyards simultaneously undertaking commercial and military projects. At the same time, the U.S. Navy's 2025 fiscal year plan states that the U.S. commercial shipbuilding industry is almost "completely collapsed" and calls for long-term revitalization plans to support naval shipbuilding.

The CSIS report pointed out that since the USTR announced the additional port fees in April, the world's largest container ship operator, Mediterranean Shipping Company (MSC), has already ordered 12 new ships in China.

MSC, based in Switzerland, along with Hamburg Süd, Maersk, and CMA CGM, has moved ships related to China off U.S. trade routes to limit or completely avoid this new fee.

As early as July, Silvia Ding, President of Maersk Greater China, stated that when ordering new ships, Maersk considers various factors including cost and technical requirements, but will not increase customer prices due to U.S. port fees, nor will it exclude Chinese shipyards, reflecting "continued confidence and commitment to the Chinese market."

Hong Kong English media South China Morning Post analyzed that the Trump administration's policy of imposing high port fees on ships made or operated by China has forced the shipping industry to face a difficult choice: either remove Chinese ships from their fleets or bear sharply rising costs. Maersk's statement further casts doubt on whether the U.S. can curb China's dominant position in shipbuilding.

The analysis also noted that, from Silvia Ding's remarks, the port fee policy set to take effect in October may not have a significant impact as some initially thought.

MSC also stated that thanks to a new east-west route network launched in February, the company has been able to cope with market chaos. MSC said that the network no longer uses a consortium model, but is independently operated, offering high flexibility to quickly respond to market changes.

Marie-Caroline Laurent, Senior Vice President of MSC, stated in June that China has both the technology and capability. Even if the U.S. is determined to challenge China's dominant position in the global shipbuilding industry, the port fees imposed will not hinder shipowners from ordering more new ships from China.

In February this year, the USTR proposed charging fees for ships built in China entering U.S. ports. In April, the USTR published a Federal Register, claiming that all ships built in China and owned by Chinese entities would be charged fees based on the number of goods they carry whenever they dock at U.S. ports. The relevant fee measures will be implemented 180 days later, in two phases.

According to the fee details published in the bulletin, in the first phase, starting from October 14 this year, the U.S. will charge a so-called "maritime service fee" of $50 per net ton for any vessel operated by Chinese operators or owned by Chinese entities. This amount will increase by $30 annually for three years, reaching $140 per net ton in 2028.

Some analysts point out that the U.S. government is trying to force companies to build ships in the U.S. and stop using Chinese ships through port fees and a package of tariffs on Chinese-made equipment, but whether these measures will be effective in practice remains unclear.

Notably, since the announcement of the port fee plan in February, due to strong opposition from shipping companies and industry organizations, U.S. officials have made multiple modifications to the proposal.

A shipping company market representative said that given the recent series of policy reversals by the U.S. government, there are still doubts about how the port fees will be implemented. He said that his company's customers are currently more concerned about U.S. tariff issues rather than port fees, as tariffs pose a more direct threat to businesses.

Regarding the U.S. crackdown on ships built in China, the Chinese side clearly emphasized that the development of China's shipbuilding industry is the result of corporate technological innovation and active participation in market competition, making an important contribution to promoting global trade, ensuring the stability and security of the global supply chain. The U.S.'s unilateralist and protectionist practices are unpopular and will only increase global shipping costs, disrupt the stability of the global production and supply chains, harm the interests of countries around the world, and ultimately fail to revitalize the U.S. shipbuilding industry.

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Original: https://www.toutiao.com/article/7554186314237641231/

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