France-based CMA CGM announced on Friday that the U.S. proposal to impose high port fees on Chinese vessels will significantly impact all companies in the container shipping industry.
The Office of the U.S. Trade Representative has proposed charging up to $1.5 million for Chinese-manufactured vessels entering U.S. ports as part of its investigation into China’s expansion in the shipbuilding, maritime, and logistics sectors.
“China builds more than half of the world’s container ships, so this will have a significant impact on all shipping companies,” said the company’s CFO, Ramon Fernandez, to reporters.
CMA CGM, controlled by Chairman and CEO Rodolphe Saade’s family, is the world’s third-largest container shipping company. Fernandez noted that the company has substantial operations in the U.S., operating several port terminals, and its subsidiary APL has ten ships flying the U.S. flag.
When asked about CMA CGM’s vessel-sharing agreement, Ocean Alliance, with Asian partners including China COSCO, he stated that there are no indications that the alliance might be questioned given U.S. policies.
He declined to comment further on the U.S. Trade Representative’s proposal, expecting a decision in April.
Fernandez mentioned that the organization has anticipated that the new tariffs announced by President Donald Trump will have some impact on shipping this year, potentially accelerating the shift in trade routes that has been ongoing since tariffs were imposed on China during Trump’s first term.
He added that last year’s surge in shipping volumes, driven by a rush to ship goods ahead of new tariffs, is expected to continue into early 2025.
CMA CGM reported a 7.8% increase in shipping volumes for 2024, with group revenues rising 18% to $55.48 billion.
However, he noted that, given geopolitical uncertainties and the risks of overcapacity, the market outlook for this year appears less optimistic.
Last year, disruptions in the Red Sea due to attacks by Houthi militants absorbed additional capacity, as many vessels diverted around southern Africa.
Fernandez added that normal traffic through the Red Sea following a ceasefire in Gaza will alter this balance and could lead the company to scrap older ships.
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Post time: Mar-10-2025
