China’s “Special Port Fee” on US-flagged, owned, or operated vessels, which took effect on October 14, is a direct retaliation for the US Trade Representative’s (USTR) Section 301 investigation fees imposed on Chinese-linked vessels calling at US ports, which also began on the same day. The Chinese fee is set at RMB400 (approximately $56) per net tonnage, charged per voyage at the first Chinese port of call.
Maersk TP7 Service Changes
To avoid paying the substantial, unexpected Chinese port fees on two of its US-flagged vessels, Maersk immediately announced “temporary adjustments” to its TP7 Transpacific service, diverting the ships from China to a South Korean port instead.
Potomac Express Diversion
The US-flagged Potomac Express will no longer call the Port of Ningbo.
- Ningbo Import Cargo: Will be discharged at Busan, South Korea, and then loaded onto other, non-US-flagged vessels in the Maersk network for delivery to Ningbo.
- Ningbo Export Cargo: Will be loaded onto the Maersk Luz and then connect with the Potomac Express at Kwangyang, South Korea, on October 24. The Potomac Express will then continue its journey back across the Pacific.
Maersk Kinloss Diversion
Similarly, the US-flagged Maersk Kinloss will omit its Ningbo call.
- Ningbo Import Cargo: Will be discharged at an unspecified South Korean port and relayed to Ningbo via the Maersk network.
- Ningbo Export Cargo: Will be loaded onto a “shuttle” vessel and transshipped in South Korea to connect with the long-haul service.
Cost and Logistics
The diversion was a logistical choice made by Maersk to avoid the unexpected fee of RMB400 ($56) per net tonnage, which would have applied to each vessel for calling Ningbo. The company chose the complexity and potential delay of transshipment in South Korea over incurring the large, new fee. Maersk also stated its intent to make longer-term changes to the TP7 rotation to ensure supply chains continue to run smoothly.
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Source: Seatrade Maritime