The United States is set to impose a new tax on its major shipping lines, targeting Chinese companies such as Cosco and OOCL. The “Cosco tax” will charge carriers that operate in the US with a fee based on the size of their vessels, which will be capped at 4,000 teu or less.
According to industry analysts, Chinese carriers will struggle to adapt to the new rules, as they have a large presence in the US market. In February, Linerlytica reported that 51% of Cosco-OOCL tonnage called at US ports, making it one of the largest contributors to the country’s shipping traffic.
Industry experts warn that the tax could lead to reduced competition for ocean cargo, higher prices, and limited service options for US shippers. The World Shipping Council president, Joe Kramek, has expressed concerns about the potential impact on the market, stating that decreased competition could increase prices and reduce options for shippers.
The new rules also have implications for the recycling market, which will be negatively affected by the continued use of non-Chinese vessels. According to industry analyst Philip Damas, “This proposal raises serious operational questions for the Ocean Alliance, which includes Cosco and OOCL. One solution would be to divide ships within the Ocean Alliance across different trades.”
However, some analysts see potential benefits from the new tax, including reduced supply of newbuilds, which could lead to an increase in demand for used vessels. According to industry expert Alphaliner, “The Cosco tax” is seen as a market distortion that will have significant ripple effects on both the newbuild and charter markets.
As the US shipping market continues to evolve, it remains to be seen how Chinese carriers will adapt to the new rules and their potential impact on global shipping dynamics.
Source: https://www.lloydslist.com/LL1153279/Most-shipping-lines-can-avoid-US-port-fees-but-Cosco-faces-major-challenge