CMA CGM Says No U.S. Surcharges Planned as Carriers Prepare for USTR Fees
With just a month to go to the announced date that the U.S. will start charging fees to Chinese operators and vessels built in China, the shipping industry is working to blunt the impact. CMA CGM issued a customer update reporting that it is taking steps to shift deployments and, as a result, it does not plan to implement a surcharge at this time to cover the USTR-related fees.
The French company, which has a fleet of over 740 vessels (343 owned), reports it is drawing on its flexible and diversified fleet to prepare for the upcoming implementation of the fees. While the final rules have yet to be released, it notes that, based on the April announcement by the U.S. Trade Representative, the fees will be phased in over three years. Furthermore, CMA CGM reports it used the 18—day grace period after the announcement to develop and implement an “adaptive contingency plan.”
“Thanks to the fleet and operational adjustments we are now implementing ahead of October 14th, we currently expect to both maintain our service coverage to all scheduled U.S. ports and minimize any impacts of the upcoming USTR fees,” CMA CGM advised customers.
It, however, admitted that the fees may create challenges for its operations. Based on the current structure of the fees, it says it does not plan to implement surcharges, with a caveat, “as currently structured.” The industry, however, waits for the release of the final details, while there have been unconfirmed reports that U.S. Customs and Border Protection (CBP) will be tasked with collecting the fees.
The carrier joins others in the industry that have said they are taking steps to shift deployments to avoid the fees. Maersk has said it expects to limit the impact by avoiding putting Chinese-built ships on routes to the U.S. Chinese companies are the most exposed, with analysts warning that the fees are likely to have a significant impact. China and its state shipping company COSCO have called the fees “discriminatory” and warned investors of the impact. Recently, an analyst at HSBC projected in a report to investors that without network changes, COSCO could face over $1.5 billion in fees in 2026, while its subsidiary OOCL could incur an additional $654 million.
CMA CGM in March announced plans to make large investments into the U.S. It said it planned to triple its U.S.-flagged operations as part of an investment valued at $20 billion. The carrier, however, continues to build vessels in China and has recently been linked to reports of large future orders also with Chinese shipyards. CMA CGM currently has over 110 vessels on order, which would add 1.6 million TEU according to figures from Alphaliner, to a fleet that currently has a total capacity of approximately 4 million TEU.