Cosco Shipping, China's largest container carrier, criticised the U.S. plan to impose steep docking fees on its ships, which analysts estimate could reach US$8 million to US$10 million per voyage.
Cosco Shipping Corp. Ltd., the liner's parent company, criticised the U.S. Trade Representative's Section 301 investigation into China's maritime logistics and shipbuilding industries, calling its findings discriminatory.
The company said the resulting port fees are also unfair and disruptive to the global ocean shipping market.
"We firmly oppose the accusations and the subsequent measures," Cosco Shipping Lines, Cosco, the world's fourth-largest container line, said.
"Such measures not only distort fair competition and impede the normal functioning of the global shipping industry, but also threaten its stable and sustainable development."
Cosco, which operates some operates some of the largest vessels between Asia and the United States, made the comment following the U.S. announcement that it will proceed by October with previously planned port fees for vessels built in China — including fleets containing Chinese-built ships or ships ordered from China — that call at U.S. maritime gateways in a bid to revive shipbuilding in America and counter China's dominance of the industry.
But instead of charging up to US$1.5 million per port call on China-built ships, which had triggered significant backlash from the industry, the USTR scaled back on its plan and revised the set fees to be calculated based on net tonnage or cargo carried per voyage, whichever is greater.
The USTR said that Chinese-built ships calling at U.S. ports will be charged US$18 per net vessel tonnage or US$120 per container discharged, whichever is higher.
Cosco said in the statement that "ultimately, these actions risk undermining the security, resilience, and orderly operation of global industrial and supply chains."
"As a responsible global provider of shipping and logistics services, we consistently uphold the principles of integrity, transparency, and compliance in international industry competition," it said.
"We remain steadfast in our commitment to supporting global trade and delivering high-quality, reliable commercial shipping and logistics solutions to our clients worldwide," Cosco added.
Beyond the direct impact of the port fees, the Chinese shipping giant is also expected to face fewer calls at U.S. ports through the Ocean Alliance, which includes Chinese carrier OOCL and Taiwan's Evergreen.
The planned port fees stem from the findings of a January USTR investigation that revealed that China's share of global shipbuilding tonnage surged from 5% in 1999 to over 50% by 2023, largely due to extensive state subsidies and preferential treatment for state-owned enterprises, which have pushed out private-sector and international competitors.
In contrast, the report noted a significant decline in shipbuilding activities within the U.S. since the 1970s. The USTR said that while American shipyards produced 70 vessels in 1975, they now only construct about five ships annually.
China had already slammed the port fees proposal earlier. Chinese Foreign Ministry Spokesperson Lin Jian said, "Such measures as imposing port fees and levying tariffs on cargo handling facilities hurt the US itself as well as others."
"The move not only hikes global maritime shipping costs and disrupts the stability of global industrial and supply chains, but also increases inflationary pressures in the US and hurts the interests of American consumers and businesses," Lin added.
