Maritime Warfare: Fee Battles Between US and China Escalate

The US and China initiated additional port fees on shipping firms, sparking a trade conflict. China exempts some ships, while US aims to loosen China's maritime dominance. Analysts predict a $3.2 billion impact by 2026. COSCO faces major effects, and trade tensions could distort global freight dynamics.

The United States and China are set to intensify their trade dispute by imposing additional port fees on shipping companies, transforming ocean shipments into a pivotal arena for economic confrontation. These charges apply to a wide range of commodities, from holiday goods to crude oil, illustrating the high stakes involved.

Chinese officials announced they have started collecting these fees on vessels owned, operated, built, or flagged by the U.S., with exemptions for Chinese-built ships and empty ships coming for repairs. The U.S. policy, set to commence shortly, aims to challenge China's grip on global maritime trade, setting the stage for increased competition.

With around half of the expected $3.2 billion fees to be shouldered by China-owned COSCO, the competitive landscape is poised for disruption. Analysts and shipping consultants suggest that these new policies may escalate costs but are unlikely to significantly disrupt global trade. Nevertheless, the geopolitical implications remain significant.

(With inputs from agencies.)