US-China port-fee pause buoys shipping optimism despite 1-year duration, lingering concern
Hope for a permanent agreement persists, and one analyst calls saga ‘a painful reminder how shipping is just a pawn in the superpower tussle for supremacy’
SCMP
The port-fee postponement announced by China and the United States offers a glimmer of relief to the shipping industry, but analysts warn that a one-year suspension is insufficient to eliminate persistent uncertainties, as maritime measures continue to serve as leverage in broader geopolitical tensions.
Although the US did not specify when the suspension would take effect, and China stated that it would only follow through if the US acts first, the agreement appears to offer a short-term reprieve – or at least sends a positive signal – amid continuous volatility in the shipping industry and global trade this year.
The World Shipping Council was “very encouraged” to hear the news and was looking forward to more specific details, the Washington-headquartered trade association representing the international liner shipping industry said by email.
“Global trade flows best when it flows freely, and a suspension of ship fees by the United States and China is a win for farmers, exporters and consumers. Avoiding additional costs helps keep trade competitive and maintains access to critical shipping lanes,” the trade body said.
At freight booking and payment platform Freightos, head of research Judah Levine said the suspension was unlikely to trigger a surge in transpacific freight demand, but it does provide supply-chain stakeholders with greater certainty and stability than at any previous point this year.
And at shipbroker Banchero Costa, global head of research Ralph Leszczynski said: “These policies on port fees on both sides were just a politics-driven decision which did not take into account the practical realities on the ground.”
Given how impractical those criteria were, especially considering the US administration’s history of inconsistent trade policies, there have been broad expectations that port fees would be reversed or at least watered down, Leszczynski said.
Hailing his meeting with Xi as “amazing”, Trump said he planned to visit China in April, followed by a trip by Xi to the US later.
Given the time-limited nature of the suspension, shipping lines are likely to maintain some compliance with restrictions while maintaining vessel reshuffling plans, Lars Jensen, CEO of maritime consultancy Vespucci Maritime, said via social media on Thursday.
Simon Heaney, a senior manager of container research at maritime consultancy Drewry, said in a social media post the agreement has “permanency”, a quality that had been “sorely lacking” prior to the deal.
“The whole sorry saga is a painful reminder how shipping is just a pawn in the superpower tussle for supremacy.”