🇺🇸🇨🇳Trump's plan to impose tariffs on China-linked vessels operating in US ports would distort competition in the maritime container shipping industry.
➡️Cosco Shipping, a Chinese state-owned shipping line, would be one of the most affected, facing a 15% increase in costs for transporting containerized goods on the Trans-Pacific route, according to Citi estimates.
➡️To avoid the application of port taxes, shipping companies must meet certain requirements, such as operating outside of China, maintaining a fleet with less than 25% of vessels built in that country, and not having committed construction orders with Chinese shipyards in the next two years. The proposal would also include incentives of up to US$1 million per call for US-built vessels.
➡️Companies and analysts warn that the levies could lead to increased freight costs, delivery delays, and a potential restructuring of trade routes, as some international shipping lines may choose to divert cargo to ports in Canada and Mexico, using land transport to complete their routes.
🐻 If anyone wants to buy anything, absolutely anything, that requires a sea shipment, you should do it now. Things are going to get ugly and the only ones who end up paying for all this mess are the end users.