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Port Fees on Chinese Ships to Boost Costs; Tariffs Split Aluminum Sector By Liz Young

A U.S. government proposal to penalize Chinese ships could hit importers hardest.

The U.S. Trade Representative's office is considering imposing multimillion-dollar fees on Chinese-operated, Chinese-built and Chinese-flagged ships that call at U.S. ports to counter China's dominance of global shipbuilding.

The WSJ Logistics Report's Paul Berger writes that the fees stand little chance of bolstering domestic shipbuilding . Business groups such as the U.S. Chamber of Commerce and the National Retail Federation say the fees could drive up shipping costs, forcing retailers and manufacturers to raise prices.

Logistics specialists say ocean carriers could blunt some of the charges by shuffling their fleets so that a greater share of Japanese- and South Korean-built ships call at U.S. ports. That would still leave the carriers exposed to penalties based on the number of Chinese-built ships they own or have on order. Almost 70% of orderbook capacity is being built in Chinese yards, according to Linerlytica.

Because containerships make multiple calls at U.S. ports, ocean carriers could be looking at millions of dollars in charges per voyage. Analysts at Jefferies estimate the fees could add $150 to $300 to the average cost of shipping a container from China to the U.S. West Coast.

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Commodities

Tariffs are driving a wedge through the $92 billion aluminum industry. The WSJ's Bob Tita reports that President Trump's plan to raise tariffs on imported aluminum is pitting aluminum buyers and supplies against one another.

Aluminum buyers that use the metal to make beverage cans, window frames and auto parts say the tariff threats are already raising their costs, and that there are few U.S. suppliers capable of meeting their needs after years of declining production.

Producers say they've had to compete for years against foreign-made materials sold at artificially low prices. They believe the tariffs would help them restore profits and would support domestic production by limiting the supply of aluminum made abroad.

The tension shows how tariffs can work well for some parts of the supply chain by protecting struggling domestic industries, while raising costs for U.S. companies that have grown used to cheap overseas supplies.

Quotable Number of the Day In Other News

Sales of new homes in the U.S. sank in January . (WSJ)

Hong Kong plans to lower taxes as part of efforts to jumpstart economic activity. (WSJ)

Drugmaker Eli Lilly plans to build four new manufacturing plants in the U.S. (WSJ)

BP will boost oil-and-gas production and sharply cut investments in clean energy. (WSJ)

Lowe's reported a slight decline in overall sales for the latest quarter. (WSJ)

T.J. Maxx parent company TJX forecast sales growth this year. (WSJ)

Danone said demand for its products in North America increased at the end of last year. (WSJ)

Semiconductor company Onsemi plans a 9% cut to its workforce. (WSJ)

Aston Martin says it will reduce its global workforce by 5%. (WSJ)

Electric-vehicle startup Lucid is searching for a new CEO . (WSJ)

The chairman of Stellantis said President Trump should focus new tariffs on imported vehicles made without U.S. parts. (Transport Topics)

U.S. and Russian officials have identified the Arctic as a possible area for economic cooperation. (Bloomberg)

Private-equity firm InfraVia bought a majority stake in French shipping company Louis Dreyfus Armateurs. (Lloyd's List)

Madison Capital acquired four warehouses occupied by retailer REI for $230 million. (Real Deal)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 27, 2025 07:06 ET (12:06 GMT)

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