The United States Trade Representative (USTR) has targeted Chinese shipping companies and vessels with hefty fees under Section 301 of the Trade Act. This decision, announced in January, aims to counter what the U.S. deems as unreasonable practices by the Chinese government in shipping, logistics, and shipbuilding sectors that are perceived to hinder American commercial activities. As a result, Chinese shipping company vessels entering U.S. ports now face a fee of $1 million, while ships built in China are subject to a $1.5 million charge.
The repercussions of this policy have been swift and substantial. In the first quarter of this year, China’s bulk carrier orders plummeted to just 13—a stark 90.9% decrease from the 143 orders recorded during the same period last year. This marks the lowest figure in 32 years since 1993. TradeWinds, a maritime industry journal, attributes this decline partly to the USTR’s imposition of fees on Chinese ships entering U.S. waters.
On April 15, TradeWinds cited statistics from Howe Robinson, a maritime market analysis firm, highlighting this significant downturn in China’s bulk carrier orders. The report underscores how these new regulations have disrupted China’s previously dominant position in bulk carrier construction, where its market share was nearing 60%.
Adding another layer to this complex scenario is President Donald Trump’s recent executive order aimed at revitalizing the U.S. shipbuilding industry. This move is expected to further intensify measures against Chinese shipbuilding and bolster domestic production capabilities.
Meanwhile, South Korea is poised to benefit from these developments as it continues its strong performance in securing orders for liquefied natural gas (LNG) carriers. TradeWinds reported that U.S.-based LNG company Venture Global recently visited South Korea’s “Big 3” shipbuilders—HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean Shipyard—to negotiate orders for up to 12 LNG carriers. These negotiations include four 180,000㎥ class carriers with options for eight more, with contracts anticipated as early as the end of the second quarter this year.
Notably, Venture Global has excluded Chinese shipyards from this bid due to U.S. regulations against China. As TradeWinds noted: “Venture Global excluded Chinese shipyards from this bid, considering the U.S. regulations against China.”
Source: Business Korea