- U.S. and China agree to suspend reciprocal port levies for 12 months.
- Matson awaits refund and implementation guidelines from the authorities.
- Trade fees initially aimed to boost U.S. shipbuilding and curb China’s influence.
U.S. shipping company Matson Inc. has forked over $6.4 million in port fees to China since these charges kicked in on October 14, as announced by CEO Matt Cox on Tuesday. Based in Hawaii, Matson is one of the few carriers still operating U.S.-built and -flagged vessels, and they were among the first to start making these payments, reports Reuters.
U.S.-China Agreement Pauses Levies for 12 Months
This payment revelation comes on the heels of a recent agreement between President Donald Trump and President Xi Jinping to put a hold on the reciprocal port fees for a year, starting November 10. This decision aims to ease maritime tensions and minimise trade disruptions between the two nations.
Refund and Implementation Details Awaited
Cox mentioned that Matson is looking forward to the U.S. Trade Representative and China’s Ministry of Transport releasing detailed guidelines and possible refund options soon. These details will help clarify how the fee suspension will be rolled out for the shipping lines affected.
Trade Dispute and Impact on Shipping
Previously, the Trump administration had introduced fees on ships linked to China to bolster U.S. shipbuilding and lessen dependence on Chinese maritime power. In retaliation, China imposed similar port entry fees on U.S.-linked vessels starting on the same day, October 14. Industry experts had cautioned that these measures could disrupt global trade and increase costs for consumers.
Financial Impact if Fees Had Continued
Cox noted that without the suspension agreement, Matson would have been looking at $80 million in port fees annually for 2026 and 2027. He welcomed the bilateral decision, describing it as a welcome development that also included tariff cuts and a pause on China’s restrictions on rare earth exports.
COSCO Among the Most Exposed
China’s state-owned COSCO Shipping was particularly vulnerable to the U.S. port fee measures, with analysts estimating potential costs of around $1.5 billion per year if the fees had stayed in place.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Reuters
