News / ONE opts for South Korean newbuilds to avoid hefty US port fees

Photo: © Darryl Brooks

Faced with hefty US port fees for Chinese-built box ships, ONE is in discussions with the Hyundai group’s shipbuilding division over an order for a dozen LNG dual-fuelled ships of around 16,000 teu.

The total price is said to be $2.5bn, and the potential cost of the US Trade Representative’s penalties were reportedly enough for the Japanese carrier group to overlook the 11% higher price of the South Korean shipbuilders.

China’s state-owned carrier Cosco, however, seems undeterred by the Trump administration’s protectionist moves and is set to charter six 8,300 teu newbuildings from Seaspan, which has signed a letter of intent with Hudong-Zhonghua Shipbuilding. Alphaliner said this could give Seaspan ’preferential’ access to building slots for ‘standard class’ vessels.

It is Cosco’s second arrangement with Seaspan within a month, having already agreed to charter six 11,400 teu ships the Canadian tonnage provider had contracted at Shanghai Waigaoqiao Shipbuilding.

From October, Chinese-built ships calling US ports will be charged $18 per net ton or $120 per container discharged, whichever is higher. By April 2028, this charge will rise to $33 or $250. Also from October, regardless of where the vessels were built, Chinese ship operators must pay an additional $50 per net ton, which gradually increases to $140 by April 2028.

Alphaliner commented that, despite a global orderbook rapidly approaching 10m teu, shipowners and carriers were still negotiating potential orders. And operators not calling at US ports continue to have ships built in China.

Turkey’s Arkas Line has ordered four 3,100 teu ships from CSSC Huangpu Wenchong Shipbuilding, at $50m each, for delivery in 2028., and China’s Jiangsu Ocean Shipping (JOSCO) has booked four 3,000 teu ships at Jiangsu Soho Chuangke Shipbuilding, for $45m each, for delivery in 2027.

Arkas already has six 4,300 teu ships under construction at Wenchong, as it boosts its fleet, now comprising 49 vessels ranging from 1,000 teu to 2,800 teu.

JOSCO, also owner of intra-Asia operator Jiangsu Port Shipping, is also going for larger ships – the largest in its current fleet of nine containerships are 1,900 teu.