CMA CGM warns: The high U.S. port fees will affect the global container shipping industry!
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, America, Canada, Australia, Southeast Asia, etc., and is more than the owner of the cargo owner.
Recently, the Office of the United States Trade Representative (USTR) proposed to impose high port fees on Chinese ships built in U.S. ports, a move that will have a significant impact on the global container shipping industry. French shipping giant CMA CGM said that this policy will have a significant impact on the entire industry as most container ships around the world are built in China.
According to the USTR proposal, the U.S. plans to charge up to .5 million for Chinese ships entering its ports. The proposal aims to investigate China's expansion in shipbuilding, maritime and logistics. "China has built more than half of the world's container ships, so this will have a significant impact on all shipping companies," said Ramon Fernandez, CMA CGM's chief financial officer.
CMA CGM is the world's third largest container shipping company, with a large number of operations in the United States, operating multiple port terminals, and its subsidiary APL owns 10 American flag ships. Fernandez noted that although CMA CGM signed a ship-sharing agreement with Asian partners including China COSCO, the Ocean Alliance, there is currently no indication that the alliance will be questioned due to U.S. policy. USTR is expected to make its final decision in April.
The CMA CGM report shows that its transportation volume increased by 7.8% in 2024, supporting the 18% growth in group sales to .48 billion. However, the market outlook for 2025 seems less optimistic given geopolitical uncertainty and the risk of overcapacity in ships. Fernandez said the turmoil in the Red Sea region led to the absorption of additional capacity, and as traffic in the Red Sea returned to normal after the Gaza ceasefire, it could lead to overcapacity, prompting some companies to scrap old ships.
The US proposal to impose high port fees on Chinese ships will have a profound impact on the global container shipping industry. Shipping companies such as CMA CGM need to pay close attention to USTR's final decision and be prepared to deal with it. At the same time, this policy may also prompt global shipping companies to reassess cooperation with Chinese shipyards and even seek alternatives, thereby intensifying competition in the global shipbuilding market.
