US fines on Chinese freight ships threaten business

The Nice Ocean Atlantic Container container line warns that the US government is considering striking the cargo ships built on Chinese, force it to leave the United States and throw off the global supply chain from balance, potentially fermenting tariffs for freight transportation that has not seen since the COVID.

“This gets worse than all,” said Andrew Abbat, CEO of ACL. “If this happens, we do not work and we will have to close.”

The US Trade spokesman spent the second day of the hearings this week on fines that will be charged in accordance with section 301 US trade law on Wednesday, more than 300 trading groups and other stakeholders warn the government in the comments and testimony that there is a US No position to win the economic war This places oceanic carriers using blood vessels in the middle. Soon, the Chinese courts will be 98% of the ocean commercial ships.

The policy proposal that began in accordance with the Biden Administration and ended with a conclusion in the January report Chinese shipbuilding industry had an unfair advantageIt would allow the US government to impose steep levies on Chinese ships arriving in the US ports. For Chinese operators (such as COSCO), a $ 1 million fee may be charged on each ship. For non -China ocean carriers with fleets containing Chinese courts, the services fee will be up to $ 1.5 million per call in the United States.

In the ACL presented commentary In Ustr Abbot Agalev’s economic difficulties, which would face his company, saying that if the US government went forward with fines, it “will make us completely uncompetitive compared to other carriers in US auctions.”

The ACL, which is the oldest, is constantly running a container line in the world and belongs to the Grimaldi Group of Italy, is the sole operator of combined nailed ships between North America and Northern Europe.

When the ACL has abandoned the US market, domestic manufacturers will lose the only American North Atlantic carrier, as well as the primary North Atlantic carrier of the oversized and design cargo to Europe. ACL handles vehicles, construction equipment, planes, including Airbus wings, as well as a project, including more than half of the American construction machinery, agricultural machinery and oversized vehicles moving from New York ports, Baltimore and Norfolki to Europe.

“All Airbus wings are made here in the US, and we are transporting them to the UK,” said Abbot CNBC. “If we disappear, you will have to find another brake volume.”

Abbott made it clear to CNBC that the situation from its company is unique, and the largest ocean carriers will be able to better soften the impact of potential fines. “I am going to end up the client from $ 2000 to $ 2500, if the big guys can only have $ 800, so in today’s world, this is a huge amount of money, and can potentially get us out of business. So we would be forced to pull our ships out of the Atlantic, from US trades and are likely to move them.

The purpose of the policy proposals is to revive the US internal shipbuilding industry, but many commentators claim that these penalties are the wrong way to achieve this. Frawle said that that is why he made a publication of his campaign. “Chinese operators with whom they try to go with the way they control their ships, and the number of ports they call will probably be one of the most affected by this new installation. So the guys you want to navigate, go out of the Scots, and the guys who were in your country,” said Ebot.

The closure of US offices ACL will affect 300 employees in addition to the supply chain that supports them, such as truck drivers and warehouse workers.

In his recent speech in Congress, President Trump said his administration would create a special position on shipbuilding and offer tax benefits for domestic production.

Abbot says the current reality in the American shipbuilding industry is one of the forces that leave ACL that depends on China. “The only reason I use the Chinese is that when we went to the US yards, they told me they couldn’t build a ship for seven years. The auditors we talked to the military. They had no place to create a commercial ship. Dollars-$ 80 million on the ship?

Abbot said the threat of closing in the United States as a result of the fees came at a time when the trading route was on the rise of changes in trade policy.

After 2024, which Frawat said, he was the lowest year since 1967, after the US exports to the US increased by 50%. “This is all overload. All the fear is unable to get your belongings, as well as investing in retaliation,” he said. “

The main ocean carriers plan to bypass the fines if the US government brings them, with significant consequences for some US ports.

Soren Toft, CEO of the world’s largest ocean carrier, MSc, said CNBC at a recent TPM conference in Long Bich, California, which at least one port, port of Auckland, can be eliminated, and containers are distracted into alternative ports such as LOG.

Obbat said that rebooting American imports or exports to Canadian and Mexican ports does not have economic sense, Ebot said because “the cost of internal transport is not anxious.”

He also warned that the cancellation of the port would create congestion in the ports, where the containers are redirected, which creates artificial crunch in the presence of containers, and, as a result, feeds the tariffs of the trucks above.

“There will be an increase in the speed of the era,” Frawat warned. “Everything you need to do is bring a lot of US exporters from business. They will not be able to compete with the rest of the world.”

Watch the full video interview with the evach below.