Businesses uncertain who will pay new port fees charged on Chinese ships

With our portfolio of global container shipping service, and strong presence on the trades to and from the USA, the U-Freight Group is mindful of the fact that new port fees are set to be charged by the USA on Chinese ships from October 14th, but businesses are reportedly uncertain who will ultimately pay them.

Carriers say they don’t plan to pass on the costs to importers and exporters, but some businesses are concerned that may change, The Wall Street Journal (WSJ) reported Wednesday (September 17th).

The report noted that a reduction of trade flows has stoked competition among carriers and made them reluctant to raise prices for fear that it would cost them business.

Some carriers have told customers they currently have no plans to raise prices in response to the fees, though they reserve the right to do so in the future, according to the report.

Still, though carriers are absorbing the costs of the port fees now, businesses worry that they will choose instead to pass them along to customers in the future, the report said.

Meanwhile Mediterranean Shipping Co. (MSC), the world’s largest container carrier, has announced a major restructuring of its vessel network in response to the new port fees. By restructuring its vessel deployments, MSC seeks to shield shippers from the brunt of new port fees. 

Changes in MSC’s vessel deployment strategy could ripple through shipping alliances and partnerships, prompting other carriers to re-evaluate their positions in the face of new U.S. trade measures.

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