China, US port fees disrupt cargo flows, push up rates

New fees imposed on port calls by China and the U.S. are reducing the number of cargo vessels available for moving goods and threatening to increase consumer costs in both countries, industry executives said.

- CORRESPONDENT

Ship operators have taken China-linked ships out of U.S. trade lanes to avoid new port fees that started on October 14. They are also moving U.S.-linked ships out of China schedules to avert retaliatory fees that went into effect the same day.

Those workarounds are disrupting transits and squeezing ship cargo space, even as operators remain uncertain about how China assigns U.S. ownership or control in its fee assessment.