In a Major Sigh of Relief both China and US have suspended Rival Port Fees in latest trade war thaw.

China has suspended retaliatory port fees on US linked vessels for the next one year, following Washington’s pause of similar charges under its “Section 301” investigation targeting the Chinese maritime sector. After months of uncertainty over the rival port fees, which took effect on October 14, the shipping industry can finally breathe a sigh of relief as both sides formally confirmed the pause.

In line with the outcomes of the US-China trade talks in Kuala Lumpur, the Ministry of Transport said the State Council had approved a one-year halt to special port duties on US vessels, effective from 1.01 PM Beijing time today, mirroring Washington’s move.

Also, from today, the Ministry of Commerce announced that sanctions against five US affiliates of South Korean shipbuilder Hanwha Ocean, which was imposed on October 14th would be suspended for one year. Beijing had accused the entities of cooperating with Washington in enforcing its curbs. Following the Kuala Lumpur talks and the presidential meeting in South Korea in late October, the White House announced on November 01st that it would pause its port fees, effective Monday, as part of its trade truce with China.

The administration said it would continue negotiating with Beijing while maintaining its “historic” cooperation with South Korea and Japan to revitalise American shipbuilding. The shipping industry has welcomed the paused duties.

“We see the agreement to suspend the port fees as positive news for our customers as it gives them greater visibility, certainty and stability in their supply chains”, the shipping giant Maersk said.

“For shipping, this truce could not be timelier”, Xclusiv Shipbrokers, an Athens-based shipbroker, said in a note last week. The resumption of long-haul US soybean shipments to China, another outcome of the presidential talks is driving renewed demand for dry bulk carriers, according to the note. The trade route’s absence in recent months had eliminated nearly 200 voyages, it added.

Team Maverick