Following a union complaint about unfair Chinese competition in shipping and shipbuilding, the Trump administration's trade representative has proposed unprecedented access fees for Chinese-operated and Chinese-built ships - fees large enough to change the economics of container shipping in the U.S. market.

China's state-led shipbuilding sector dominates the global market for new tonnage, and China is the leading shipowning nation (by some metrics). Decades of preferential funding and government support have allowed Chinese shipyards to deliver useful tonnage at prices that other international competitors cannot match.

The USTR's action has been coming since at least last year. The White House's office of the U.S. Trade Representative began looking at ways to deploy Section 301 of the Trade Act of 1974 to counter China's shipping dominance strategy in 2024. The Act gives the president broad authority to take action against foreign nations that engage in unfair trade practices. It has been used extensively in the past to counter Chinese exporters' practice of selling goods below cost to gain market share.

"The U.S. Trade Representative determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce, and thus is actionable," the USTR wrote in a Federal Register notice Friday.

The proposed fee structure is complex and steep, and the register notice contains several policy alternatives. All would be quite costly for the operator:

- Each U.S. port call for any vessel operated by Chinese interests will be subject to a fee of either a) $1 million per ship for any size vessel, from tugboats up to VLCCs; or b) $1,000 per deadweight tonne - a far lower price.

- Each U.S. port call for each vessel built in China, but operated by non-Chinese interests, will be subject to a fee of up to $1 million, depending on the proportion of Chinese-built ships in that operator's fleet.

- Operators who have newbuilds on order in China will face additional fees of up to $1 million per port call.

- If an operator owns a U.S.-built vessel, each port call of that vessel in the U.S. could generate a refund in an amount of up to $1 million per entry. Specifics for minimum vessel size, cargo volume, voyage distance or port call duration were not provided.

The proposal also includes an ambitious proposal to require that an increasing percentage of U.S. exports be carried on U.S.-flagged tonnage. The schedule would ramp up fast with a one-percent U.S.flagged quota effective immediately, followed by three percent by 2027, five percent by 2028, and 15 percent by 2032. A parallel quota requiring exports on U.S.-built vessels would take effect beginning in 2028, ramping up to an ambitious five percent by 2032.

The USTR did not specify whether the percentage of U.S. export cargo would be measured by tonnage or by dollar value.

A freight train left Chongqing's Tuanjetsun station for Afghanistan's Hairaton city on Monday morning, marking the launch of the first direct rail route connecting the named metropolis in southwest China with Afghanistan.The train carrying 55 containers of communications equipment manufactured by Chinese telecommunications giant ZTE will cross the state border at Khorgos checkpoint in the Xinjiang Uygur Autonomous Region /Northwest China/ and reach its destination in Hairaton through the territories of Kazakhstan and Uzbekistan. The entire journey is expected to take 12-15 days.The transported cargo will reportedly be used to support the construction of Afghanistan's local communication networks in order to contribute to the socio-economic development of the country.“With the direct rail freight scheme, transportation time will be reduced by 3-5 days compared to road transportation and logistics costs are expected to be reduced by 15-20 percent. It will strengthen the safety and efficiency of transportation and delivery of goods,” said ZTE official Liu Jianfeng.So far, more than 18,000 freight trains have been dispatched from and to Chongqing on China-Europe/China-Central Asia international rail freight routes, according to local authorities.The successful opening of the direct freight route will further strengthen trade and economic cooperation and exchanges between Chongqing and Afghanistan, as well as with other Central Asian countries, said the person in charge of the Chongqing-Xinjiang-Europe Supply Chain Management Company.

A new port service-focused intelligent model, known as the Ark TaaS (Trade as a Service) model, recently began a public beta phase in Qingdao, Shandong province.

The model is a collaborative project between Qingdao Port of Shandong Port Group and Shandong Port Science and Technology Group.

The Ark TaaS model crafts six core application scenarios that center around the key stages of maritime import and export trade, comprehensively transforming the landscape of port and shipping logistics, said its developers.

The innovative features of the model incorporate intelligent services into all aspects of port management, catering to a wide range of users including shipowners, cargo owners and freight forwarders. The model's influence extends to various domains such as daily port operations, strategic business analysis, production optimization, smart office solutions and advanced logistics services.

"The Ark TaaS model is a groundbreaking achievement that aligns with the intelligent evolution of ports and shipping," said Xu Xiang, deputy general manager of Qingdao Port International Container Development Co Ltd.

"We have delved into port data and tracked customer needs to craft the Ark TaaS model centered around practical applications," said Xu, who is also a key member of the founding team of Ark intelligent shipping and portal services in Qingdao.

Chang Jian, another member of the founding team, highlighted the importance of integrating cutting-edge large-model technology with the actual operations of ports and shipping.

"We communicated with frontline operators such as drivers, shipping agents and freight forwarders to develop targeted functions like intelligent shipping valuation and navigation," said Chang.

"As one of the first users of Ark TaaS, we have experienced the convenience it brings. The model has enabled us to plan transportation routes, dispatch vehicles efficiently and ensure the safe and timely delivery of goods, providing crucial support for logistics development," said Ma Hongwei, deputy director of the logistics center of Qingdao Special Iron and Steel Co Ltd.

Wishing you prosperity, success, and happiness in the Year of the Snake.

May our partnership continue to thrive and bring mutual growth.

Wishing you prosperity, success, and happiness in the Year of the Snake.

May our partnership continue to thrive and bring mutual growth.