IN the latest issue of Sea-Intelligence Sunday Spotlight (Issue 712), analysts examined the potential impact of the US Trade Representative's (USTR) revised proposal to penalise both Chinese shipping lines and non-Chinese carriers operating vessels built in China.
While major global carriers may have broader exposure due to larger fleets, their ability to reassign ships gives them flexibility.
The report focused instead on small, independent niche carriers operating on the transpacific, which could be more vulnerable to the new rules.
In Q1 2025, five niche carriers operated a combined 49 vessels on the transpacific trade, of which only 14 were Chinese-built.
With vessels under 4,000 TEU exempt from the new tariffs, just two ships fall under the scope of the proposed fees: one operated by Matson and one by SM Line.
These account for 10 per cent and nine per cent of their respective transpacific fleets and only four per cent of the total niche fleet on this route.
Analysts suggest that both companies substitute the affected ships or spread the additional costs across their operations.
However, the outlook is more severe for Chinese carrier Hede Shipping, which would be subject to a separate tariff purely because it is a Chinese company, without exemptions for vessel size.
If enacted, the proposal would impose a fee of US$667,000 per US-bound voyage starting October 2025, escalating to $1.9 million per voyage by April 2028.
According to the analysis, this cost level could make it unfeasible for Hede Shipping to continue its transpacific service to the US market.
SeaNews Turkey
While major global carriers may have broader exposure due to larger fleets, their ability to reassign ships gives them flexibility.
The report focused instead on small, independent niche carriers operating on the transpacific, which could be more vulnerable to the new rules.
In Q1 2025, five niche carriers operated a combined 49 vessels on the transpacific trade, of which only 14 were Chinese-built.
With vessels under 4,000 TEU exempt from the new tariffs, just two ships fall under the scope of the proposed fees: one operated by Matson and one by SM Line.
These account for 10 per cent and nine per cent of their respective transpacific fleets and only four per cent of the total niche fleet on this route.
Analysts suggest that both companies substitute the affected ships or spread the additional costs across their operations.
However, the outlook is more severe for Chinese carrier Hede Shipping, which would be subject to a separate tariff purely because it is a Chinese company, without exemptions for vessel size.
If enacted, the proposal would impose a fee of US$667,000 per US-bound voyage starting October 2025, escalating to $1.9 million per voyage by April 2028.
According to the analysis, this cost level could make it unfeasible for Hede Shipping to continue its transpacific service to the US market.
SeaNews Turkey
