CMA CGM has decided that, for now, it will absorb fees to be applied by the Trump administration on operators of Chinese-built ships.
Earlier this year the US Trade Representative Office recommended penalties be imposed on Chinese shipowners and operators, as well as any other using Chinese-built ships on services calling at US ports. The fees will be applied, beginning on 14 October, and applied to every port call by every designated ship.
Although strongly opposed by shipping organisations, US importers and trade associations say there have been no indications of a backdown at this stage. As things stand the fees will be phased in over a period of three years, increasing incrementally over time.
The CMA CGM Group has two services directly connecting Australia with North America, the PCX to the West Coast (with Hapag-Lloyd and Maersk) and the PAD to the East Coast (with Marfret).
ANL/CMA CGM provides three ships to PCX, all built in South Korean yards. Of the vessels supplied by the other operators, four are Chinese-built and two South Korean.
All fourteen vessels maintaining the PAD service – 13 from CMA CGM and one from Marfret – are Chinese-built.
In an overnight advisory, CMA CGM said it is fully prepared and well-positioned to safeguard its customers’ interests.
“We operate one of the most flexible and diversified fleets in the industry,” the Group said.
“During the 180-day grace period following the 17 April USTR announcement, CMA CGM has taken the necessary steps to implement a robust and adaptive contingency plan.
“Thanks to the fleet and operational adjustments we are now implementing ahead of 14 October, we currently expect to both maintain our service coverage to all scheduled U.S. ports and minimize any impacts of the upcoming USTR fees.
“Despite the challenges this new service fee may create for our operations, based on the current structure and applicability of the service fee, CMA CGM does not plan to implement a surcharge at this time to cover USTR-related fees as currently structured.”
Work released by HSBC this week estimated COSCO Shipping and its subsidiary OOCL face the greatest impact from the USTR impositions, c.US$1.6 billion and $654 million respectively in 2026, modelled at $600 per container extra on the main trade between Shanghai and the West Coast.