Latest news with #CoscoShipping
CTV News
3 days ago
- Business
- CTV News
U.S. and Europe trade negotiators discuss tariffs in Paris
FILE -The "Cosco Shipping France" container ship is moored at the Long Beach Container Terminal, LBCT, at Middle Harbor in the Port of Long Beach, Calif., , April 15, 2025. (AP Photo/Damian Dovarganes, File) PARIS — Europe and the United States are meeting in Paris to negotiate a settlement of a tense tariff spat with global economic ramifications between two global economic powerhouses. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organization for Economic Cooperation and Development. 'We're advancing in the right direction at pace — and staying in close contact to maintain the momentum,' Šefčovič posted on social media platform X alongside a photo of him shaking hands with Greer. Brussels and Washington are unlikely to reach a substantive trade agreement in Paris. The issues dividing them are too difficult to resolve quickly. President Donald Trump regularly fumes about America's persistent trade deficit with the European Union, which was a record $161 billion last year, according to the U.S. Commerce Department. Trump blames the gap between what the U.S. sells and what it buys from Europe on unfair trade practices and often singles out for criticism the EU's 10% tax on imported cars. America's was 2.5% until Trump raised it to 25% in April. The EU has argued its purchases of U.S. services, especially in the technology sector, all but overcome the deficit. After the Trump administration's surprise tariffs last week on steel rattled global markets and complicated the ongoing, wider tariff negotiations between Brussels and Washington, the EU on Monday said it is preparing 'countermeasures' against the U.S. The EU has offered the U.S. a 'zero for zero' deal in which both sides end tariffs on industrial goods, including autos. Trump has rejected that idea, but EU officials say it's still on the table. The EU could buy more liquefied natural gas and defense items from the U.S., and lower duties on cars, but it isn't likely to budge on calls to scrap the value added tax, which is akin to a sales tax, or open up the EU to American beef. 'We still have a few weeks to have this discussion and negotiation,' French trade minister Laurent Saint-Martin said in Paris on Wednesday ahead of the OECD meeting. 'If the discussion and negotiation do not succeed, Europe is capable of having countermeasures on American products and services as well.' Greta Peisch, who was general counsel for the U.S. trade representative in the Biden administration, said the zero-for-zero proposal could provide a way to make progress if the Trump administration 'is looking for a reason not to impose tariffs on the EU.'' But Peisch, now a partner at the Wiley Rein law firm, wondered: 'How motivated is the U.S. to come to a deal with the EU?'' Trump, after all, has longstanding grievances complaints about EU trade practices. One target of his ire is the value-added tax, similar to U.S. state sales taxes. Trump and his advisers consider VATs unfair protectionism because they are levied on U.S. products. But VATs are set at a national level, not by the EU, and apply to domestic and imported products alike, so they have not traditionally been considered a trade barrier. There is little chance governments will overhaul their tax systems to appease Trump. Likewise, the Europeans are likely to balk at U.S. demands to scrap food and safety regulations that Washington views as trade barriers. These include bans on hormone-raised beef, chlorinated chicken and genetically modified foods. 'When you start talking about chickens or GMOs or automobile safety standards, you're talking about the ways countries choose to regulate their economies,' Reinsch said. 'We think that's protectionist. They think it's keeping their citizens healthy ... It's been a sore point for 60 years.'' ___ By Catherine Gaschka, Sam Mcneil And Paul Wiseman, The Associated Press McNeil reported from Barcelona and Wiseman reported from Washington, D.C.
Yahoo
21-04-2025
- Business
- Yahoo
Cosco Says ‘Discriminatory' Port Fees Threaten Global Shipping Stability
Cosco Shipping rebuked the U.S. Trade Representative's (USTR) decision to levy port docking fees on Chinese-owned and -operated ships Friday, calling the move 'discriminatory' against the country's maritime, logistics and shipbuilding industries. 'We firmly oppose the accusations and the subsequent measures. 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,' said Cosco Shipping in a statement. 'Ultimately, these actions risk undermining the security, resilience and orderly operation of global industrial and supply chains.' More from Sourcing Journal CSX CEO: China Decoupling Could Benefit East Coast Volumes USTR Dials Back Port Fees on Chinese Ships Chinese Dupes and DHGate Take on the World Chinese state-owned Cosco Shipping and its subsidiary Orient Overseas Container Line (OOCL) are expected to endure the biggest blow of any of the major global ocean carriers. Combined, both container shipping firms made over 1,300 U.S. port calls in the 12 months through March, according to data from S&P Global Market Intelligence. 'Cosco/OOCL will be hit harder than other carriers,' said Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, in a post on LinkedIn Friday. 'This is likely to cause a network adjustment in Ocean Alliance such that CMA CGM and Evergreen will be operating U.S.-bound services as much as possible. Other carriers will shuffle vessels where possible to have Chinese ships in other trades.' Importers using Cosco or OOCL may have to rethink their partnerships, as 17 percent of U.S. inbound container cargo from the Far East comes on Chinese carriers, according to Linerlytica. The updated proposal from the USTR dialed back the initial port fees, which would have initially charged liners up to $1.5 million per port call depending on percentage of Chinese-built ships in a fleet. Those fees were cumulative, and would have charged carriers up to $1 million per stop if more than half of new orders came from Chinese shipyards. Under the first iteration of the fees, Cosco would have had to pay $3.5 million per individual port call, and $10.5 million to stop at three U.S. ports. But the update softens the blow, with cumulative fees eliminated and charged based on a full U.S. voyage and not individual port call. However, Cosco would still have to pay a pretty penny starting Oct. 14, when fees are set at $50 per net ton. Under that calculation, the average large 12,000 20-foot equivalent unit (TEU) Cosco container ship that carries roughly 60,000 tons would generate a $3 million fee for a full port rotation. '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 said in its statement. 'Looking ahead, we will continue to safeguard our clients' interests while offering a comprehensive range of dependable services. We encourage all clients to stay informed about specific service offerings and protective measures provided by our subsidiaries across various business segments.' Cosco has been the target of U.S. restrictions before. In January, the Department of Defense blacklisted the company, prompting some charterers to request brokers to not offer the Chinese firm's vessels. In response to the port fees, China's commerce ministry agreed with Cosco that the move had 'discriminatory characteristics' that 'seriously harm the legitimate rights and interests of Chinese companies, disrupt the stability of the global supply and production chain' and 'violate World Trade Organization rules.' Multiple Chinese industry associations expressed their dismay with the port fees and the wider Section 301 investigation that prompted the penalties. The China Association of the National Shipbuilding Industry (CANSI) and China Shipowner Association (CSA) released statements in opposition to the fees, with the former expressing 'extreme indignation' over the USTR announcement. 'The decline of the U.S. shipbuilding industry is the result of its protectionism and has nothing to do with China,' CANSI said, suggesting the restrictions will lead to a surge in international shipping costs, and will also further aggravate the U.S.'s 'domestic inflation dilemma.' CSA claimed the Section 301 investigation, which determined that China had an 'unreasonable' dominance of the maritime, logistics and shipbuilding industries, said the probe was 'based on political bias' and 'false facts and prejudice.' The U.S. actions against the Chinese maritime industry The implementation of the new port fees followed the Federal Maritime Commission's (FMC) decision to classify the Chinese-Polish Joint Stock Shipping Company (Chipolbrok) as an entity controlled by the Chinese government. Headquartered in Shanghai, Chipolbrok is jointly owned by the governments of China and Poland. 'Controlled' carriers are subject to increased regulatory oversight by the FMC. Chipolbrok joins other China-based liners including Cosco, OOCL, Hede and Anji Shipping on the controlled carrier list, alongside HMM (Hyundai Merchant Marine), which is operated by the South Korean government.
Yahoo
21-04-2025
- Business
- Yahoo
China Cosco Shipping protests US port fees
BEIJING (Reuters) -Chinese ports operator Cosco Shipping said in a statement on Monday it opposed accusations by the United States and measures against China's shipbuilding and logistics industry. "The move is not conducive to fair competition and normal business operation order in the global shipping industry," the state-owned conglomerate said. Sign in to access your portfolio
Reuters
21-04-2025
- Business
- Reuters
China Cosco Shipping protests US port fees
BEIJING, April 21 (Reuters) - Chinese ports operator Cosco Shipping said in a statement on Monday it opposed accusations by the United States and measures against China's shipbuilding and logistics industry. "The move is not conducive to fair competition and normal business operation order in the global shipping industry," the state-owned conglomerate said.
Yahoo
18-04-2025
- Business
- Yahoo
USTR Dials Back Port Fees on Chinese Ships
The Office of the U.S. Trade Representative (USTR) scaled back plans to impose port docking fees on Chinese ships following significant backlash across American industries and global shipping firms alike. Among the major changes, fees will come into effect 180 days after the Thursday announcement. Starting Oct. 14, fees on Chinese-owned and -operated ships will be based on net tonnage per U.S. voyage, and will be set at $50 per net ton. From there, an extra $30 per net ton will be tacked on each year through 2028. More from Sourcing Journal MSC Reportedly Weighs Splitting Panama Ports From $23B Hutchison Deal Tariff Tumult Cripples Chinese Port Activity as Trade War Escalates 'The Market's Going to Soften' for Trans-Pacific Cargo, LA Port Director Says Unlike the preliminary proposal, these will be assessed per port rotation, rather than individual port calls. Additionally, fees will not be cumulative. The USTR did not break out fees per container. China-based Cosco Shipping and subsidiary Orient Overseas Container Line (OOCL), which made over 1,300 U.S. port calls over the last 12 months, according to data from S&P Global Market Intelligence, would remain the most impacted ocean carriers. Chinese-built ships owned by non-Chinese companies, which comprise most of the major shipping firms like Mediterranean Shipping Company (MSC) and Maersk, will be charged $18 per net ton, with annual fee increases of $5 over the same period. The average large 12,000 20-foot equivalent unit (TEU) container ship can carry roughly 60,000 tons, which would amount to a $1,080,000 fee for a rotation. All fees will be charged up to five times per year, per vessel. 'Ships and shipping are vital to American economic security and the free flow of commerce,' said USTR Jamieson Greer in a statement. 'The Trump administration's actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.' The fees function as a U.S. penalty on China over what the USTR ruled as an 'unreasonable' dominance over the shipbuilding, maritime and logistics industries after a nine-month probe. The office has argued that China has had the benefit of state subsidies, thus making it difficult for other countries to compete with Chinese shipyards. Not all Chinese-built vessels will be impacted. Vessels sailing less than 2,000 nautical miles from a foreign port will not be fined. Neither will smaller ships that carry less than 4,000 20-foot TEUs. It is not immediately clear how high the maximum fees would run for large container vessels. The initial proposal called for fees of $1.5 million per port call for Chinese-built ships, and up to $1 million for Chinese-operated ships. Under the previous proposal, which had included cumulative fees, a Chinese-built ship sailing for Cosco Shipping would have to pay up to $3.5 million in penalties at each port call in the U.S. The fees do not apply to U.S. government cargo. The majority of nearly 600 public comments collected by the USTR criticized the first iteration of the levies, before a two-day public hearing took place in March. The American Apparel and Footwear Association (AAFA) still opposes the fees, arguing that they will reduce U.S. trade that could both result in losses for American businesses and further raise costs for U.S. consumers. 'We are deeply concerned that the newly announced port fees and shipping mandates are destined to have devastating consequences for American workers, consumers, and exporters. With fees as high as $1.5 million per port call, these measures are driving up shipping costs, shrinking GDP and reducing U.S. exports,' said Nate Herman, AAFA senior vice president of policy, in a statement. 'When ocean carriers raise rates, American families will pay the price through higher costs and growing product shortages, at a time when they can least afford it.' Herman argued that smaller regional ports will see fewer vessel calls, putting local jobs at risk and disrupting the flow of U.S. goods. 'We fully support strengthening the U.S. maritime industry, but penalizing shippers for not using American-flagged or built vessels, when they cost up to five times more and remain in limited supply, is counterproductive,' Herman said. The Alliance for American Manufacturing (AAM), one of the parties that supported the initial implementation, was pleased with the final action. 'The largest obstacles to shipbuilding in the United States are the unfair trade and economic practices of China. While no nation should be faulted for seeking to develop maritime capabilities, Beijing's ambitions go well beyond that,' said AAM president Scott Paul in a statement. 'Our nation's shipbuilders and workers deserve a level playing field and haven't had one for decades. We thank the United Steelworkers and their labor partners for initiating this groundbreaking case.' Beyond the port fees, the USTR has made a new proposal to tariff Chinese-built or -controlled ship-to-shore cranes up to 100 percent, and 20-percent to 100-percent tariffs on Chinese containers and chassis. The crane tariff would be a serious escalation of the 25-percent duties the Biden administration slapped on the equipment last year. The USTR will hear additional comments on the proposed tariffs until May 8, with another public hearing set to be held May 19. As expected, China was critical of the USTR's decisions, with its foreign affairs ministry reiterating that the port fees and tariffs on cargo-handling facilities harm both the U.S. and China. '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 U.S. and hurts the interests of American consumers and businesses,' said spokesperson Lin Jian early Friday. 'The practice will ultimately fail to revitalize the U.S. shipbuilding industry. We urge the U.S. to respect facts and multilateral rules, and immediately stop its wrongdoings. China will take necessary measures to defend its lawful rights and interests.' Earlier this month, President Donald Trump signed an executive order aimed at reviving the U.S. shipbuilding industry as concerns develop in Washington about China's growing gap with the U.S. in shipbuilding and maritime capabilities. That EO would help incentivize private investment in the construction of commercial components, parts and vessels, enforce the collection of harbor maintenance fees and create a maritime trust security fund.
