Source: Global Times
[Global Times Comprehensive Report] The policy of the US government to impose high tariffs on Chinese-made container terminal cranes is disrupting its own port modernization plans. According to a report by the Wall Street Journal on December 6, citing industry insiders, the US' aforementioned tariff plan has forced port operators to consider delaying the purchase of large-scale modern cranes and postponing port modernization projects. US port operators warned that high tariffs could cause upgrade costs to surge by tens of millions of dollars.
Last month, while the US government announced a suspension of port fees for Chinese vessels, it also announced a one-year suspension of high tariffs on Chinese-made container terminal cranes. Under the previous plan, the US government was set to impose a 100% tariff on Chinese cranes and container chassis, and propose a new tax of up to 150% on certain cargo handling equipment.
Although the high-tariff plan has been suspended, it has not reassured US port operators. In fact, some US ports are trying every means to extend the service life of old equipment rather than purchasing modern new equipment. US shipping officials said that cranes take at least two years from order to delivery, but the suspension of tariffs only lasts a year, making it not worth the risk to purchase; additionally, changing trade policies have made investment planning even more difficult.
The Port Authority Association found in a survey this year that currently no domestic manufacturer in the United States is producing container terminal cranes. Industry surveys showed that in the next 10 years, the US plans to purchase 151 container cranes, of which about 80% will be purchased from China. Davis, president of the Port Authority Association, said that the US crane manufacturing industry has "disappeared for decades," and imposing high tariffs on Chinese cranes will not "magic" back the US crane manufacturing industry.
The Wall Street Journal directly stated that US government officials are worried about the country's over-reliance on China in port equipment. Over the past few decades, China has dominated the maritime manufacturing industry, including shipbuilding, containers, and port crane production. If the US stops importing from China, it would be difficult to find alternative sources in the short term, and cultivating and enhancing local manufacturing capabilities would also be difficult.
The Port Authority Association said that apart from China, there are currently only a few companies in the world that produce container terminal cranes available for international procurement. These include Finland's Kone Cranes, Japan's Mitsubishi Engineering & Shipbuilding, and Switzerland's Liebherr. However, US port operators said that the cost of these cranes is at least 15% higher than those produced in China, and the combined capacity of these companies cannot meet the US demand for about 20 new cranes per year. Although the US government has been pushing to establish a domestic crane manufacturing industry, US shipping officials said that establishing an industry domestically would take years, and the cost of cranes manufactured in the US would be higher than those made in Asia and Europe. (Zhen Xiang)
Original: toutiao.com/article/7581251819049927208/
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