Vessels built in China exempt from special port fees for US owned shipsCredit: CSSC
China has announced the implementation measures for its port fees for US ships that come as a tit-for-tat measure against the USTR 301 port fees for Chinese owned, operated or built vessels that call US ports from 14 October.
China’s Ministry of Transport said, “This move seriously violates WTO rules and the Sino-US maritime agreement, causing serious damage to maritime trade between China and the United States.”
In response China said on 10 October that it would be RMB 400 per net ton charge for US ships calling at Chinese ports from 14 October rising to RMB1,120 by 17 April 2028, effectively mirroring the USTR charges on Chinese ships calling in the US from the same date.
The notice on implementation measures by the Chinese ministry reiterated the five categories of vessels that will be charged the at its ports.
1 & 2 Ships owned or operated by US businesses
3 Ships owned by US companies where enterprises, other organisations, and individuals directly or indirectly hold 25% or more of the equity – such as voting rights and board of directors
4 Ships flying the US flag
5 US built ships
However, China has now added a specific exemption that the fees will not be applicable to vessels that built by Chinese shipyards, even if they fall into the first four categories of US ownership.
Under the regulations the shipowner or agent will need to file details of ownership seven days before a port call in China, or the previous call if the voyage is less than seven days, and pay the special port fee if required. It is not clear how, or if this will apply to ships calling in from today, 14 October, that have not been able to submit details seven days in advance.
A vessel that has failed to pay the port fee will be barred from loading and unloading operations in port.
“The scope, standard and start and end time of special port fees for ships will be dynamically adjusted according to the situation,” the Ministry said.
There is particular concern over the condition of 25% direct or indirect holdings in a US company, which could be potentially impact international owners listed in the States.
NYSE-listed VLCC owner DHT Holdings appointed its long time CEO and President Svein Moxnes Harjfeld to its Board of Directors on 13 October. With the appointment of Harjfeld, a Norwegian national, the company’s board comprises five members, with only one US citizen or 20% bringing it below the 25% threshold. There was no notification from DHT of a resignation of a previous director.
In a statement that followed shortly after DHT said, “the Company is not aware of US shareholders or reporting groups that have disclosed ownership in, or control over, directly or indirectly, 25% or more of DHT’s issued and outstanding shares or voting rights in the aggregate.” Although the company also noted it was not able to verify the nationality of the ultimate beneficial owners of shares held.
Under the special port fees analyst Poten estimated US-owned or operated VLCC would have to pay around $6 million per call in China. All of DHT’s fleet of VLCCs were built at South Korean yards.
