- China suspends special port charges on US ships for one year.
- Pauses probe into impact on shipping, shipbuilding supply chains.
- Move follows US suspension of Section 301 probe on China’s maritime sector.
China has suspended the collection of port fees on ships linked to US fleets for one year, effective 1:01 pm Beijing time on Nov. 10, the country’s Ministry of Transportation announced on its website on Nov. 10, reports Platts.
Meanwhile, the ministry also immediately paused the investigation into the impact on the security and development interests of the shipping, shipbuilding, and related supply chains, according to the statement.
China suspends ‘special port fees’ on U.S. vessels
MOT the moves were in response to the US decision to suspend, for one year, a broader investigation under Section 301 of the US Trade Act of 1974 targeting China’s shipping and shipbuilding industries, effective Nov. 10, following economic and trade talks between the two countries in Kuala Lumpur.
“The move could unleash more fleet capacity and lower global tanker freight rates,” Zhuwei Wang, director of oil trading research at S&P Global Commodity Insights, said.
On April 17, the US Trade Representative announced Section 301 investigation measures against China’s shipping sector, which include new port service fees for Chinese-owned, Chinese-flagged and Chinese-built ships calling at US ports, taking effect on Oct. 14.
In retaliation for new US trade curbs on Chinese maritime, logistics and shipbuilding industries, China introduced special port fees on ships owned, operated, or built by US interests starting Oct. 14.
On Nov. 5, China’s State Council Tariff Commission announced it to remove retaliatory tariffs on various US agricultural and other products imposed since March 10, effective Nov. 10, following the White House’s Nov. 1 announcement of a 10% reduction in fentanyl-related tariffs on Chinese goods.
In a separate announcement published the same day, the SCTC said it will further suspend the 24% reciprocal tariffs on all US goods for one year starting Nov. 10, while retaining a 10% reciprocal tariff on US imports as a countermeasure.
However, this tariff reduction will not extend to key US energy commodities, including LNG, crude oil and coal, according to a statement from the SCTC on Nov. 5.
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Source: Platts
