US-China Trade Port Fees: Logistics Costs Set to Surge
The US and China began levying additional port fees on shipping companies starting Tuesday, October 14. This policy targets vessels carrying all types of goods—from holiday toys to crude oil—and has the potential to increase supply chain costs.
China said it had levied a “special tax” on US-owned, operated, built, or flagged vessels, with a reduction for Chinese-built vessels. The US, on the other hand, is scheduled to begin imposing similar fees on the same date.
As a result, logistics operators are wary of increased shipping, potential sudden route halts, and port congestion. If continued, these additional fees could trickle down to the prices of consumer goods and energy.
Adding to tensions, China's Ministry of Commerce imposed “countermeasures” on five US-affiliated subsidiaries of Hanwha Ocean, accusing them of assisting a US government investigation that is deemed to threaten China's reach. The market is now awaiting signs of de-escalation or the repatriation of vital sectors to prevent further disruption. (asd)
Source: Newsmaker.id
