Hyundai Glovis Breathes Easy as U.S. Suspends Port-Entry Fee Sanctions

Hyundai Glovis, South Korea's leading car carrier, benefits from the U.S. decision to temporarily suspend port-entry fee sanctions, saving the company USD 137.2 million annually. The suspension follows a trade truce with China, impacting fees applied under Section 301 of the Trade Act. Relief measures take effect immediately.

In a significant development for Hyundai Glovis Co., the largest car carrier in South Korea, the United States government has suspended its vessel port-entry fee sanctions for a year. This decision relieves the company of a hefty annual financial burden amounting to around 200 billion won (USD 137.2 million). The relief comes after the U.S. Office of the Trade Representative had imposed a fee of USD 46 per net ton on foreign-built car carriers, a measure initially targeting Chinese-made ships. The sanction suspension follows a recent trade truce between Washington and Beijing, prompting the U.S. to announce a one-year halt under Section 301 of the Trade Act.

The Federal Register last Thursday published the suspension, which took effect this Monday and will last until the end of the next year. The decision offers immediate financial relief to Hyundai Glovis, which had been compelled to levy additional surcharge fees on shippers to cover the new U.S. policy costs. With the sanctions lifted, the company plans to rescind these surcharges on freight charges from Monday onwards.

However, Hyundai Glovis is still assessing whether to retain surcharges for the period between October 14 and November 9, as fees for ships entering U.S. ports during this timeframe remain applicable. The company advocates for shared cost responsibilities with its shippers for that specific duration. Industry insiders suggest that if trade relations between the U.S. and China remain stable, the suspension could extend beyond next year, offering prolonged respite to Hyundai Glovis and similar entities. (ANI)

(With inputs from agencies.)