Tag: <span>Supply chain</span>

The deal struck by the US and China to pause reciprocal port fees for one year starting Monday has generally been welcomed by shipping, agricultural and manufacturing interests as well as port industry players, the US Trade Representative said, although the move has been criticized by labor unions.

The USTR said in a statement Sunday it received 73 responses during a 48-hour comment period it held last Thursday and Friday to garner feedback from the pause in port fees and tariffs targeting China.

“Many [respondents] noted that suspension of the action would lower shipping costs and avoid commercial disruption,” the USTR said, adding the pause would provide an opportunity for the US to negotiate with China “on the issues raised in this investigation and permit additional time to find solutions to increase investment in US shipbuilding.”

The USTR also confirmed in its statement that planned 100% tariffs on China-built ship-to-shore cranes and other cargo handling equipment, due to take effect Monday, have also been suspended for a year.

It said it is still accepting comments until Tuesday on proposals to impose tariffs of up to 150% on certain cargo handling equipment produced in China, including rubber tire gantry cranes and related components. But any action is likely to be stayed in the wake of the broad trade deal announced Oct. 30 between Washington and Beijing.

Highlighting the advantages of the port fee suspension, Joe Kramek, president and CEO of the Washington, DC-based World Shipping Council, said the pause would support the “continued use of US small and medium-sized ports, and contribute to lower costs for US farmers and manufacturers who rely on ocean liner transportation to move $335 billion in American exports each year.”

Kramek was one of several respondents to call for the USTR to make the suspension permanent.

More than 20 agricultural and farmer groups including cotton, citrus, almond, potato and dairy producers welcomed the port fee and tariff freeze, pointing out their ability to compete overseas would be otherwise undercut.

“Additional costs from port fees or equipment tariffs would directly harm US farmers and exporters, reduce export opportunities and weaken rural economies that depend heavily on agricultural trade,” USA Pulses CEO Tim McGreevy said in the group’s submission.

He also recommended agriculture’s “complete exemption from all related Section 301 fees, including port fees, vessel sourcing requirements, and tariffs on critical port equipment and components.”

China’s Transport Ministry, meanwhile, confirmed it had suspended its reciprocal port fees on US-linked ships from 1 p.m. local time Monday. The measure applies to US-owned, -operated, -flagged or -controlled ships.

Details please refer to the JOC news.

Source: JOC

The shipping industry has faced increased costs and logistical hurdles due to port fees. A new U.S.-China economic and trade agreement, announced by the White House, will suspend U.S. port fees on Chinese-built and operated vessels starting November 10. In exchange, China will eliminate its retaliatory measures, including extending its market-based tariff exclusion for U.S. imports until December 31, 2026, and halting antitrust, anti-monopoly, and anti-dumping investigations into U.S. semiconductor firms.

During this period, both countries will address maritime issues through negotiations, while the U.S. will collaborate with South Korea and Japan to bolster its shipbuilding sector. The longstanding dispute over port fees, intended to counter China’s dominance in global shipping, has cost the industry an estimated $3.2 billion annually. Earlier this week, a 12-month fee suspension was announced, though initial details on its start date and specifics were not provided.

Source: SHIPPINGWATCH

Beijing announced that the US and China have agreed to pause reciprocal shipping fees on each other’s affiliated vessels for one year, easing tensions in a conflict that has complicated their broader trade war.

The US initiated additional charges on vessels tied to China docking at US ports starting October 14, as part of an ongoing investigation by the Office of the US Trade Representative into China’s dominance in maritime and shipbuilding sectors. According to China’s Ministry of Commerce on Thursday, the US will halt actions stemming from this probe for one year.

“Following the US suspension, China will also suspend its countermeasures against the US for one year,” the statement said, referencing Beijing’s countermeasures imposed on American ships on the same date.

China’s announcement followed remarks by US trade representative Jamieson Greer, who emphasized that reviving domestic shipbuilding remains a priority. “We’re trying to rebuild shipbuilding,” he stated aboard Air Force One when asked if President Donald Trump and Chinese leader Xi Jinping had discussed port fees during their meeting in South Korea.

Recent months have seen global shipping disrupted by mutual port fees imposed by the US and China on one another’s vessels, driving up freight rates. These charges are embedded in a larger competition over maritime capabilities, with the US seeking to challenge China’s shipbuilding edge. Washington has enlisted Japan and South Korea as partners, finalizing cooperation agreements with Tokyo and Seoul this week to bolster its industry.

In retaliation, Beijing imposed sanctions earlier this month on the US subsidiaries of South Korean shipbuilder Hanwha Ocean Co., claiming the entities supported Washington’s probe into China’s maritime and shipbuilding supremacy. China has also indicated it will continue examining US policies affecting its shipping industry.

Source: Freightwaves

The US president has announced that he will impose an additional 100% tariff on goods from China from Nov. 1.

Several US companies have begun pre-ordering goods that were not originally scheduled to be available until spring, due to concerns about the announced 100% increase in US imports of Chinese products.

One of these companies is baby stroller manufacturer Austlen Baby Co, which sells its products through American retail giants such as Target, Walmart, and Amazon.

“We are trying to pre-order spring orders. We have bought as much as we could,” explains Leslie Stiba, CEO of the company, to the news outlet Reuters.

US President Donald Trump and Chinese President Xi Jinping are meeting on Thursday to negotiate a trade agreement, among other things.

According to the Chinese news agency Xinhua, representatives of the two superpowers have already discussed US tariffs on Chinese-built or Chinese-owned ships calling at US ports, along with other issues such as shipbuilding and a possible postponement of the high tariffs between the countries.

On Wednesday, however, US Treasury Secretary Scott Bessent explained that negotiations at the ASEAN summit in Kuala Lumpur had eliminated the threat of a 100% tariff on top of the existing tariffs on Chinese goods.

Source: SHIPPINGWATCH

Over the weekend, US Customs released additional details about the upcoming increased port fees for vessels linked to China, set to take effect next week.

The announcement clarifies that vessel operators, not US Customs, are responsible for determining fee liability. Vessels without proof of payment may face delays, including being denied unloading, clearance, or operational access until documentation is resolved. Payments must be made through a US Treasury website, and Customs advises operators to complete payments at least three days before a vessel arrives in the US.

The fee structure includes three tiers: Annex 1 imposes $50 per net ton for ships owned or operated by Chinese entities. Annex 2 applies to Chinese-built ships arriving in the US, with operators paying the higher of $18 per net ton or $120 per container discharged. Annex 3 affects all non-US-built vehicle carriers, not limited to Chinese ones, with a fee of $14 per net ton.

Details please refer to the Splash 247 news.

Source: Splash 247

Air and ocean networks in South China will face significant disruption this week as the strongest typhoon of the year bears down on the region.

Super typhoon Ragasa is generating sustained winds of 230 km/h (137 mph) on a track that will take it just south of Hong Kong late Tuesday, with landfall in Guangdong Province on Wednesday.

Container terminals in Shenzhen, Hong Kong and Guangzhou were taking no chances, closing on Monday as the ports prepared for the 19th typhoon to hit South China this year.

Yantian International Container Terminal, Shenzhen’s busiest terminal operator that handles about a quarter of China’s total containerized exports to the US, confirmed it suspended operations at midnight Monday. Hongkong International Terminals said gate operations there ceased early Monday.

Hapag-Lloyd said the typhoon will affect terminal operations in South China this entire week, coming on top of current berthing delays of up to three days at Nansha and Yantian caused by tropical storm Mitag, which made landfall east of Yantian on Friday.

Hong Kong flights suspended

While Hong Kong airport will remain open throughout the storm, Cathay Pacific has announced a 36-hour suspension of all inbound and outbound Hong Kong flights from 6 p.m. Tuesday to 6 a.m. Thursday. Overseas airlines are also canceling inbound flights.

Cathay Pacific said in a customer advisory that flights at Hong Kong airport are expected to gradually resume through Thursday as the typhoon moves into Guangdong Province.

Details please refer to the JOC news.

Source: JOC