Shippers brace for US levies on Chinese vessels: A round of tariffs proposed by the Trump administration on China-built and China-flagged vessels could cause a USD 1 to USD 3 mn surcharge for shipments on specific transatlantic routes, Bloomberg reports. The proposed levies — comprising docking fees — could potentially double or triple the cost for US-bound shipments of steel pipes from Germany.

Chinese state-owned shipping giant Cosco Shipping might feel the blow, as the levies may dampen demand for its services, Reuters reports. Costs for transpacific routes are predicted to surge up to 15%, which Cosco Shipping must either incur or pass onto customers.

Why this matters: More than half of the world’s cargo ships are China-made as of 2023, a 5% jump from its 1999 share, according to a report (pdf) by the United States Trade Representative’s (USTR). Chinese ownership of cargo ships is over 19% as of January 2024, whereas US-made vessels accounted for 0.01% of the global share in 2024.

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