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European and Asian carmakers, already reeling from Donald Trump’s tariffs, face being saddled with steeper prices when delivery automobiles to the US, as Washington’s new port charge coverage threatens to wreak havoc on the $150bn American seaborne automotive import market.
Having been ensnared within the delivery warfare between Washington and Beijing, automotive provider operators should pay $150 for each car they’ve capability to hold into the US from October. That would equate to extra charges of about $1.8bn a 12 months for the automotive provider sector, based on Clarksons Analysis.
This comes after the US commerce consultant (USTR) in mid-April imposed a blanket charge on all non-US constructed vessels getting into American ports, inflicting panic within the European, Japanese and South Korean delivery industries.
Lasse Kristoffersen, chief government of the main car delivery line Wallenius Wilhelmsen, advised the Monetary Instances the additional prices would find yourself with carmakers and different clients, and in the end “the consumer will pay”.
“The uncertainty is so big that you stop making cars, you’re pausing decisions, you’re delaying exports and sourcing of parts,” Kristoffersen mentioned.
The worldwide seaborne automotive commerce, which totalled roughly $600bn final 12 months, entails a fleet of 836 specialised vessels. The brand new charge regime will price as a lot as $1.2mn per US voyage for a big vessel, which the World Delivery Council says can transport 8,000 automobiles.
Many carmakers face 25 per cent tariffs on foreign-made automobiles imported into the US, and teams from Audi and Jaguar Land Rover to Aston Martin have halted car shipments to the US due to the levies.
Mitsui OSK Traces, which has the world’s second-largest fleet, mentioned it was apprehensive the brand new port coverage within the US “might impact significantly on the global supply chain of the car industry”.
Andreas Enger, chief government of Scandinavian automotive provider operator Höegh Autoliners, in late April mentioned the brand new prices would must be shared by its clients. “It is an uncertainty both on the effect of the tariffs on our customers and the trade flows,” he mentioned on the firm’s newest earnings briefing.
Clarksons’ knowledge for 2024 confirmed the automotive provider business moved a file 29mn automobiles, of which 4.6mn headed to the US.
US efforts to problem Chinese language supremacy in business shipbuilding started below Joe Biden’s administration, which opened an investigation in April final 12 months into alleged unfair Chinese language financial practices in shipbuilding and maritime logistics.
A bipartisan group of US lawmakers on Wednesday reintroduced the “Ships for America Act” to reboot the US shipbuilding business.
Based on the USTR, China’s shipbuilding market share has soared from nearly nothing within the Nineteen Nineties to greater than 50 per cent in 2023, whereas Chinese language possession of the worldwide business fleet has risen to greater than 19 per cent as of early 2025.
The brand new measures are geared toward boosting home manufacturing of ships however they had been considerably watered down from an earlier proposal to impose charges of as much as $1.5mn on ships inbuilt China following warnings from US exporters of upper freight charges and in the end greater costs for American shoppers.
Automotive provider operators had been caught off-guard with new charges that focus on not simply Chinese language however all foreign-built vessels, with no exemptions for frequency of calls that had been provided to different segments.
The brand new charges could be delayed for 3 years if operators order and take supply of a automotive provider constructed at a US yard throughout that interval.
World Delivery Council CEO Joe Kramek mentioned: “It’s not realistic. There are no yards in the US that can do it, and the shipbuilding capacity that is in the US is going to hold out for naval contracts because ultimately they’re more profitable.”
Just one vessel within the present international fleet of deep-sea automotive carriers was constructed within the US. A few fifth of the present automotive provider capability was inbuilt China, whereas Japan accounted for 47 per cent. The US solely accounted for 0.1 per cent.
Carmakers face an extra drawback as China accounts for 86 per cent of the brand new vessels which were ordered and are being constructed, based on Clarksons.
Kramek mentioned the USTR had determined to impose uncapped charges on all automotive carriers — not simply Chinese language-owned or operated vessels — with out prior discover to the business.
Automobile delivery teams are contesting the authorized foundation for regulating automotive carriers made by nations apart from the US with some delivery executives hopeful that the charges can be adjusted earlier than their implementation this 12 months.
Kramek mentioned: “These measures apply to all foreign-build vessels, even though USTR’s stated aim is to curb Chinese behaviours in the commercial shipping market. It does raise questions over whether the USTR has overstepped its authority.”
Extra reporting by Patrick Temple-West in New York
