Hefty port entrance fees likely pass on to consumers in the US
The United States' plan to impose substantial port docking fees on Chinese ships is likely to be passed on to the consumers in the US, according to Zhou Dequan, chief economist of the Shanghai International Shipping Institute.
The US Trade Representative (USTR) on February 21 proposed hefty fees on Chinese-built vessels entering US ports to spur US shipbuilding. Under the proposal, Chinese operators would pay up to $1 million port entrance fee per vessel. The fee for other operators using Chinese-built ships could reach up to $1.5 million.
"The extra cost for every container's transportation would be $400 to $600. The average freight rate is about $1,250 per TEU (twenty-foot equivalent unit) in 2023, so it is a rise of nearly 50 percent," Zhou said.
"This part of the cost is highly likely to be shouldered by the consumers in the US. It is the ultimate consumers who pay the bill," said Zhou.
