**US and global shipping:** New fees under the SHIPS for America Act targeting use of Chinese shipyards are set to increase costs for ocean container carriers from 2025. This will lead to higher freight surcharges for shippers and force shipping alliances to reconfigure fleets amid complex regulatory challenges.
Ocean container shippers are grappling with heightened operational challenges as 2025 approaches, marked by a series of new fees and regulatory changes that complicate the freight landscape. The reintroduction of the SHIPS for America Act, alongside proposals from the United States Trade Representative (USTR), has created an environment where predicting and managing freight costs has grown exceedingly complex, according to insights from Xeneta.
The SHIPS for America Act proposes the imposition of new fees on shipping carriers that utilise Chinese shipyards. Specifically, the legislation introduces a fee of $5 per ton for ships either owned or operated by Chinese carriers or registered in China. Additionally, non-Chinese carriers will also incur this fee if more than 50 per cent of their new vessels on order come from designated shipyards classified as “foreign shipyards of concern,” with the China State Shipbuilding Corporation included in the initial list. For those non-Chinese operators with 25 per cent to 49 per cent of their order book at these yards, lower fees will apply, while a penalty tax will be directed at operators heavily reliant on existing fleets from these shipyards.
This regulatory framework is poised to significantly impact the operations of shipping carriers and their alliances. As noted by Xeneta, groups such as the Ocean Alliance—which includes major players like COSCO, CMA CGM, Evergreen, and OOCL—will need to recalibrate their fleets to mitigate the financial impacts of these fees. The varying dependencies of alliance members on Chinese shipyards complicate this adjustment, raising concerns about long-term service reliability and capacity in the shipping market.
Inevitably, the burden of these rising operational costs will fall largely on shippers, who can expect carriers to pass these new fees on through increased surcharges. Xeneta advises that shippers brace for potential hikes in freight rates while also emphasising the importance of thoroughly examining their freight contracts. The complexity introduced by the updated regulatory landscape necessitates a shift in focus for shippers, urging them to consider not only the lowest prices but the broader implications of carrier selection.
Moreover, Section 415 of the SHIPS for America Act mandates a growing proportion of goods transported from China to be carried on vessels built in the United States. This requirement is likely to add further layers of cost and administrative duties for shippers.
As shipping companies navigate these new challenges, Xeneta highlights the necessity of comprehensive benchmarking of carriers. This should encompass not only cost considerations but also factors related to service delivery—such as capacity, transit times, schedule reliability, and detention and demurrage. The company suggests that employing index-linked contracts could offer shippers a degree of protection, enabling them to focus more on operational execution rather than the constant re-negotiation of rates.
Source: Noah Wire Services
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