U.S. prepares tough decisions regarding China’s shipbuilders and shipowners

The Federal Maritime Commission (FMC) will investigate seven ‘chokepoints’ in liner shipping: the Northern Sea Passage; English Channel; Malacca Strait; Singapore Strait; Strait of Gibraltar; and the Panama and Suez canals to identify any factors that create unfavourable shipping conditions. If the investigation concludes that any governments or operators have engaged in “undue practices at the expense of U.S. shipping lines”, the FMC will provide a package responses.

The FMC is empowered to take any other action deemed necessary and appropriate. The FMC can limit journeys or suspend, in whole or in part, an ocean carrier’s right to operate using U.S. ports.

An earlier investigation by U.S. Trade Representative (USTR) Jamieson Greer concluded that China was unfairly supporting maritime supply chains and proposed a USD 1.5 million fee on Chinese-built ships calling at U.S. ports. And every vessel operated by a Chinese shipping line, in Jamieson Greer’s view, should pay a ‘service fee’ to dock at a U.S. port of up to USD 1 million per call, or USD 1,000 per net ton of the vessel’s capacity.

Source: theloadstar.com