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

• Tit-for-tat US, China port fees to squeeze ship availability
• Risk of capacity crunch sends shipping rates higher
• Consumers likely to pay for higher shipping costs
• Vessel owners seek clarity in how China levies are assessed

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.

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.