Shipowners Are Adjusting Contracts for US Tax on China Vessels

Shipowners and charterers are altering leasing contracts to cope with the multi-million dollar port fees expected to be imposed on Chinese-built vessels by the Trump administration, according to people familiar with the matter.

The contours of Washington’s plan to revitalize the US shipbuilding industry are unclear and the US Trade Representative has yet to make concrete proposals on expected measures, including levies. Still, the sector is already preparing for imminent additional risk, with new clauses that state companies hiring Chinese ships will bear the cost of any taxes in part or in full, the people said. They asked not to be identified as the discussions are not public.