USTR announces actions intended to reverse Chinese dominance in shipbuilding

From the USTR release:

• Actions designed to restore US shipbuilding while mitigating disruptions
• Vessel ownders and operators of China would be assessed port fees starting at $50 per net ton in 180 days
• Fees will increase by $30 per ton per year for three years
• Foreign-built car carriers would start at $150 per vehicle in 180 days
• Fees on Chinese-linked vessels will be assessed per US voyage not per port call and will be imposed no more than 5 times per year
• Orders of US built vessels will lead to suspended fees for up to 3 years

It’s a monumental task to create a US shipbuilding industry basically from scratch. I tend to think that companies will just pay these fees or find ways around them rather than invest massively in ship building when these policies could be reversed in 4 years.

This article was written by Adam Button at www.forexlive.com.