Container ship belonging to HMM. (Photo=HMM)

 

 

[Alpha Biz= Paul Lee] The Trump administration has unveiled a proposal to impose port entry fees on shipping companies that use or order Chinese-made ships, as part of its efforts to counter China's expanding dominance in the maritime, logistics, and shipbuilding sectors. As a result, shipping stocks in South Korea have surged, benefiting from the expected ripple effect.


As of 11 AM on Monday, HMM (Hyundai Merchant Marine), the largest shipping company in South Korea, reached its 52-week high of KRW 21,650, marking a more than 12% increase from the previous trading day. Hunga Shipping also saw an increase of more than 6%, while other companies like Korea Line Corporation rose by over 2%. The sharp rise in domestic shipping stocks is likely due to the anticipated benefits from the U.S. fee proposal against China.


On February 21 (local time), the U.S. Trade Representative (USTR) announced plans to impose fees on Chinese shipping companies. A public hearing will be held on March 24. The plan includes charging a fee of up to $1 million for Chinese ships entering U.S. ports, or a fee of $1,000 per ton of the ship's capacity. 

 

 

Additionally, ships built by Chinese shipyards would face a fee of up to $1.5 million upon entering U.S. ports. If the fleet of a shipping company contains a certain percentage of Chinese-made ships, they could face incremental fees ranging from $500,000 to $1 million. Shipping companies that order vessels from Chinese shipyards would also be subject to these fees when their ships enter U.S. ports.

 

 

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