In response to the U.S.’s imposition of fees on Chinese vessels, China will begin charging U.S. ships docking at its ports starting October 14th. The Ministry of Transport stated these fees are a direct countermeasure, mirroring the U.S. policy. China will charge $56 per net ton, matching the U.S. rate, with plans to increase fees over time. While this will likely impact costs for U.S. consumers and potentially decrease export demand, it is unlikely to benefit U.S. shipbuilding due to China’s dominant market share.
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The UK government and BAE Systems have solidified Glasgow’s shipbuilding future with Norway’s decision to procure Type 26 frigates, where the Clyde will play a key role. Deliveries to Norway are anticipated to commence in 2030, further integrating Scottish shipbuilding into NATO’s northern defense efforts. This order, alongside existing contracts for the Royal Navy, Australia, and Canada, will make the Clyde the central construction hub for over twenty Type 26 frigates globally. This has a significant economic impact, supporting thousands of jobs in Scotland, and strategically aligns Norway with a multinational program.
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Following a USTR investigation, the Trump administration announced fees on Chinese-built vessels entering U.S. ports, citing unfair competitive advantages held by China’s shipbuilding industry. Initially proposed as a per-port fee potentially reaching $1.5 million, the final structure involves per-ton fees escalating over several years, starting at $0 and reaching $140 per net ton for Chinese-owned vessels by 2028. Lower fees apply to non-Chinese-owned vessels carrying Chinese-built ships, and the fees are remittable if operators order U.S.-built vessels. Exemptions exist for certain cargo types and regions.
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John Q. Hosedrinker