Shipping companies worldwide are rushing to replace Chinese financing arrangements ahead of new U.S. rules that could levy multimillion-dollar fees on ships linked to Chinese institutions.
Chinese Lease Deals Put Ships At Risk Of Hefty US Port Fees
Under draft regulations set to take effect Oct. 14, vessels considered Chinese-owned could face fees of $50 per net ton, rising to $140 per net ton over two years, according to a report by Financial Times.
That means even a modest 20,000-ton container ship could pay about $1 million per port visit, while a 100,000-ton crude carrier could see initial charges of $5 million, escalating to $14 million.
James Lightbourn, founder of New York-based Cavalier Shipping, called the potential fees a "major shift" in the ship finance market.
"Some Chinese leasing structures have become problematic for shipowners who would otherwise not be subject to the new fees," he said. "We've seen shipowners refinance Chinese lease financing before scheduled maturity to avoid exposure."
Shipping Firms Seek Non-Chinese Financing To Avoid Rising Costs
Greek operator Okeanis Eco Tankers recently replaced Chinese sale-and-leaseback deals on three very large crude carriers with $195 million in non-Chinese bank loans.
Finance Director Iraklis Sbarounis said the move strengthened the company's capital structure while shielding it from "geopolitical and other risks and costs."
China-US Container Shipping Hits Two-Year Low Amid Trade Tensions
Container shipping between China and the U.S. slid to its weakest levels in two years, with volumes dropping 40% over the past month despite an extended U.S.-China tariff truce, according to The Kobeissi Letter and Apollo Global Management.
Meanwhile, President Donald Trump warned of a potential 200% tariff on Chinese rare-earth magnets if exports were restricted, as shipments had rebounded to pre-April levels.
"They have to give us magnets, if they don't give us magnets, then we have to charge them 200% tariffs or something," Trump stated to the press.
He also intensified criticism of Europe's Digital Services Act, threatening tariffs and sanctions over what he called discriminatory rules against U.S. tech firms while favoring Chinese competitors.
Trump urged Europe to show respect for American companies or face consequences, signaling mounting global trade tensions.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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