Domestic U.S. shipping interests are closely monitoring a United States Trade Representative (“USTR”) proposal for import and export trades involving Chinese vessels. There is an ongoing Section 301 investigation prompted by domestic
Domestic U.S. shipping interests are closely monitoring a United States Trade Representative (“USTR”) proposal for import and export trades involving Chinese vessels. There is an ongoing Section 301 investigation prompted by domestic industry concerns about China’s industrial ambitions in sectors that are critical to U.S. economic and national security. The outsized role of China in international ocean shipping is greater than many would expect. China’s global tonnage of the shipbuilding market share grew from less than 5% in 1999 to over 50% in 2023. China now owns more than 19% of the commercial world fleet, 85% of the world’s intermodal chassis, and it controls production of approximately 95% of the world’s shipping containers.
Service fees and restrictions arising out of the USTR’s investigation will have a near-term effect of escalating certain ocean shipping costs. Commercial users of those services are expecting to see higher rates charged by vessel operators and through the net constriction of global shipping capacity.
China Shipbuilding Strategy Under Review
Five labor unions petitioned the USTR for the Section 301 investigation on March 12, 2024, alleging China exerts unreasonable and discriminatory policies that provide it with an unfair advantage across international maritime industries. The USTR
Content Original Link:
" target="_blank">
