The high-seas trade war between US and China becomes a double-edged sword
by Esra Ersöz - eersoz@chemorbis.com
by Zehra Kırca - zkirca@chemorbis.com 
The escalating trade conflict between US and China has now reached the maritime sector, with both sides facing serious drawbacks including chaos in shipping, cost burden as well as operational bottlenecks. Apparently, this maritime battlefield has turned into a double-edged sword — each side’s attempt to weaken the other has, for now, undermined its own efficiency and cost structure.
AAPA: “No US manufacturer of STS cranes”
US port operators raised sharp criticism over the recent decision. The American Association of Port Authorities (AAPA) warned that the new US tariffs on Chinese-made cranes and cargo-handling equipment could backfire, slowing modernization efforts and inflating costs for domestic ports. The levies include a 100% tariff on ship-to-shore cranes starting November 9 and a 150% tax on Chinese cargo-handling units to follow.
AAPA said the measures, aimed at curbing China’s dominance in maritime manufacturing, could cost US ports $6.7 billion and delay infrastructure upgrades. “There is still not a single American producer of STS cranes,” the association stressed, noting that the duties would only increase reliance on foreign suppliers now at double or triple cost. Representing 81 US ports, AAPA urged Washington to replace tariffs with tax credits and direct funding to strengthen port infrastructure.
AAPA argues the tariffs hurt American ports more than China, and measures meant to strengthen maritime security risk undermining the very infrastructure that sustains it.
China’s response deepens disruption in oil and shipping trades
Beijing’s retaliatory port fees have sent shockwaves through regional shipping markets, particularly affecting crude and product tankers bound for China. New fees add $6 million+ per voyage to tankers bound for China — a massive burden on shippers, potentially affecting one-sixth of the global VLCC (Very-large crude carrier) fleet.
Shipowners are reportedly revising ownership structures to minimize US exposure, while traders scramble to secure compliant vessels and updated documentation. The resulting uncertainty has delayed cargo discharges and congestion at major Chinese ports, and prompted several companies to suspend voyages to China and Hong Kong altogether.
Freight rates surge as shipping market and uncertainty mounts
The retaliatory measures have driven a surge in freight costs. According to the Baltic Exchange, very-large crude carrier (VLCC) chartering rates from the Middle East to China jumped 49% after Beijing’s announcement. Industry observers warn that tit-for-tat tariffs risk fragmenting global shipping markets and adding strain to oil and commodity trade flows.
China’s levies cripple the shipping flow it depends on for crude supply, creating a fee disadvantage that feeds back into its own refining and import costs. The US tariffs inflate equipment prices for its own ports, stalling modernization and deepening dependence on foreign suppliers.
AAPA: “No US manufacturer of STS cranes”
US port operators raised sharp criticism over the recent decision. The American Association of Port Authorities (AAPA) warned that the new US tariffs on Chinese-made cranes and cargo-handling equipment could backfire, slowing modernization efforts and inflating costs for domestic ports. The levies include a 100% tariff on ship-to-shore cranes starting November 9 and a 150% tax on Chinese cargo-handling units to follow.
AAPA said the measures, aimed at curbing China’s dominance in maritime manufacturing, could cost US ports $6.7 billion and delay infrastructure upgrades. “There is still not a single American producer of STS cranes,” the association stressed, noting that the duties would only increase reliance on foreign suppliers now at double or triple cost. Representing 81 US ports, AAPA urged Washington to replace tariffs with tax credits and direct funding to strengthen port infrastructure.
AAPA argues the tariffs hurt American ports more than China, and measures meant to strengthen maritime security risk undermining the very infrastructure that sustains it.
China’s response deepens disruption in oil and shipping trades
Beijing’s retaliatory port fees have sent shockwaves through regional shipping markets, particularly affecting crude and product tankers bound for China. New fees add $6 million+ per voyage to tankers bound for China — a massive burden on shippers, potentially affecting one-sixth of the global VLCC (Very-large crude carrier) fleet.
Shipowners are reportedly revising ownership structures to minimize US exposure, while traders scramble to secure compliant vessels and updated documentation. The resulting uncertainty has delayed cargo discharges and congestion at major Chinese ports, and prompted several companies to suspend voyages to China and Hong Kong altogether.
Freight rates surge as shipping market and uncertainty mounts
The retaliatory measures have driven a surge in freight costs. According to the Baltic Exchange, very-large crude carrier (VLCC) chartering rates from the Middle East to China jumped 49% after Beijing’s announcement. Industry observers warn that tit-for-tat tariffs risk fragmenting global shipping markets and adding strain to oil and commodity trade flows.
| Comparison: Shared Drawbacks and Fee Disadvantages | ||
| Aspect | China’s Port Levies | US Port Tariffs |
| Target | Vessels with US ownership or connections | Chinese-made port cranes & handling gear |
| Immediate affect | Chaos in oil shipping; cost surge for tankers | Higher infrastructure costs; delayed port upgrades |
| Fee disadvantage | >$6 million per tanker voyage | +100–150% on key port equipment |
| Who bears the cost | Global shipowners & ultimately Chinese refiners/consumers | US ports and taxpayers (through higher project costs) |
| Critics say | The policy punishes China’s own importers & logistics sector | The policy punishes US ports more than China |
| Economic outcome | Short-term freight inflation, market confusion | Long-term competitiveness erosion, modernization slowdown |
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- March hints at further hikes in European PP, PE markets
- India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom
- Q1 turnarounds uplift Mid-East PP, PE markets in February; will it spill over to March?
- SE Asia’s indefinite PE shutdowns: A market in crisis as demand woes threaten survival
- Türkiye’s PPH markets perform better than copolymers in February
- Margin recovery priorities outweigh supply imbalances in European PVC markets
- Asian PVC demand stagnant; recovery hopes shift to end of Q1
- Tough slog in S Korea’s petchem industry spells disappointing 2024 financial results; will government's recent plan help weather the storm?
- China’s PP, PE markets face post-holiday supply surge and tepid demand
- A tug-of-war unfolds in Türkiye as PVC demand struggles against rising costs
