The US is weighing a policy to slap hefty fees on port calls by Chinese operators, operators with Chinese-built vessels, and those with pending orders for Chinese vessels. But here’s the problem: in 2024 43% of port calls for US agri exports were made by vessels built in China.
If the proposals actually go through, we could see:
- Higher freight rates as Japan & Korea built vessels demand premiums to load USG/Nopac cargoes
- China-built Panamaxes ships shift to ECSA/Asia route, increasing vessel supply there and pushing P6 rates down
- South American agri export costs to China drop while US export costs rise
The goal? Weaken China. The potential outcome? A competitive edge for China and a blow to US exporters.
What will the impact be on your trades? Email us.