- US Fees on China-Linked Ships to Exceed $8.5 Million by April 2026.
- Non-Chinese Owners of China-Built Ships Granted Exemptions at US Ports.
- Hafnia and Charterers Avoid Chinese-Owned Tonnage for US Trade.
Hafnia, the largest pool of product and chemical tankers in the world listed on the New York Stock Exchange, has made the decision to refrain from sending any ships registered or owned by China to US ports starting mid-October. This move aims to sidestep any extra port fees, according to sources familiar with the situation as of August 24, reports S&P Global.
Two-Tier Market Emerges
Unless companies with ships that have ownership links with China agree to pay the additional port fees emanating from the upcoming USTR rules, “the question of sending them to the US does not arise,” one of the sources told Platts, part of S&P Global Commodity Insights. A Hafnia spokesperson is yet to respond to a request for comment.
The move is highly significant because it marks the beginning of a two-tier market of ships that will and will not call on US ports, which will be totally cemented over the next few weeks, unless the US withdraws its proposals, something which the shipping industry currently thinks is highly unlikely. “An exercise to identify such tankers has already begun,” another source said.
Pool-Wide Compliance and Ownership Checks
Hafnia, which operates nearly 200 tankers across eight different pools, has requested that all its pool partners provide a written assurance that their vessels have no ownership connections to China, Macau, or Hong Kong. This requirement extends to companies, shareholders, and ultimate beneficial owners (UBOs) holding stakes of 25% or more. A source from Copenhagen emphasized, “No risk can be taken in this regard and any financial link with China is tantamount to [Chinese] ownership.” This encompasses sale-leaseback agreements, loans, and mortgages. Partners are required to either disclose complete ownership information or legally affirm that no such financial relationships exist.
US Port Fees and Exemptions
Starting October 14, the US will implement hefty fees on ships linked to China, with costs for a Very Large Crude Carrier (VLCC) hitting $5 million and potentially climbing to $8.5 million by April 2026. However, there are exemptions for non-Chinese-owned vessels that were built in China and arrive empty to load American exports. Brokers are cautioning that these fees render Chinese-operated ships completely unviable for the US cargo market.
Market Response and Company Profile
In response to these developments, Hafnia and its charterers will steer clear of deploying any ships with Chinese connections to the US. Hafnia, which is part of Singapore’s BW Group, stands as the world’s largest operator of LR1 tankers and is publicly listed in both New York and Oslo.
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Source: S&P Global
