China Port Fees Jack-Up Oil Tanker Costs and Cause Market Chaos

China’s retaliatory port levies are exposing oil shipping companies to hefty fees, making them scramble for relevant paperwork, and contributing to delays, cancellations and spiraling freight costs.

The penalties, announced by Beijing on Friday and taking effect Wednesday, have prompted shipowners to review their corporate structures to reduce shareholdings by US entities or individuals, according to traders and shipbrokers, who asked not to be named due to the sensitivity of the issue. Some companies with more than 25% American ownership have started to remove China and Hong Kong from the list of destinations they’re willing to sail to, they said.