The US Government has opened a public hearing process with an unset closing date regarding penalizing each call to a US port of any:
Chinese built ship with an amount of up to USD 1.5 million,
ship operated by a Chinese operator with an amount of up to USD 1 million,
ship operated by an operator with ships on order in Chinese shipyards (with more than 50%) – up to USD 1 million.
The official aim of the above proposal is to have, after 7 years, at least 15% of US products exported on US flagged or built ships. The proposal has already brought some light turmoil in the shipbuilding and chartering industry, causing freight rates of some non – Chinese built ships to go up compared to their Chinese equivalent.
Very ambitious target of the US Government but whether achievable and at what cost?! The near future will certainly bring us the answers.
In case of any questions, please contact Rafał Czyżyk – Managing Partner (rczyzyk@cmwlegal.pl).