Sea-Intelligence has evaluated the implications of the US Trade Representative's proposal to impose penalties on Chinese and non-Chinese shipping lines operating vessels linked to China. The analysis focused on small independent niche carriers on the Trans-Pacific route. These global carriers, with their diverse fleets, may have more flexibility to adjust their operations away from Chinese-built vessels.
In early 2025, five niche carriers on the Transpacific route used 49 vessels, with only 14 constructed in China. Vessels under 4,000 TEUs are exempt from fees, leaving only two Chinese-built vessels over 4,000 TEUs subject to these charges.
The report indicates that the USTR proposal will affect one container vessel each from Matson and SM Line, accounting for 10% and 9% of their respective Transpacific deployments in the first quarter of 2025. This represents just 4% of the total vessels used by niche carriers during this period. These carriers might replace their Chinese-built vessels or distribute the USTR fee across their fleets.
Conversely, Hede Shipping, a Chinese carrier, faces a separate surcharge due to its ownership, with no exemptions for vessels under 4,000 TEUs. If implemented, the proposal would result in Hede Shipping incurring an average fee of US$667,000 per voyage to the US starting October 2025, potentially increasing to about US$1.9 million per voyage by April 2028. Alan Murphy, CEO of Sea-Intelligence, noted, "Effectively, this would likely result in Hede Shipping having to cease operations on the Transpacific into the United States."
Source: Container News