Opportunity for Germany The US Port Fees Could Help Against Chinese Ships

Source: Reuters / R. Wagner | Translated by AI 2 min Reading Time

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According to a study, Germany could benefit from the planned port fees by the USA. Here’s the explanation ...

China builds by far the most trade ships in the world. However, the USA now plans to impose port fees on Chinese ships, aiming to harm the de facto monopoly. Germany, however, could emerge as the winner, as a study aims to show...(Image:  Yangzijiang)
China builds by far the most trade ships in the world. However, the USA now plans to impose port fees on Chinese ships, aiming to harm the de facto monopoly. Germany, however, could emerge as the winner, as a study aims to show...
(Image: Yangzijiang)

Germany could benefit from the planned U.S. port fees for trade ships built in China, according to a study. Exports to the U.S. could increase by around two percent, as suggested by a study from the German Institute for Economic Research (DIW), which was made available to the Reuters news agency in advance. This is explained by the fact that local freight fleets rely less on ships produced in China, allowing German exporters to capture market share from affected competitors. The U.S. government aims to break China's dominance in shipbuilding with these fees, justifying their implementation with national security interests. The fees are to be imposed based on where a ship was built, not on whose goods it transports.

Port Fees Will Primarily Affect the USA Itself

According to the DIW study, the U.S. is primarily harming itself with the fees planned for November. China's imports and exports, the world's largest economy, are estimated to decrease by only 0.2 and 0.3 percent, respectively. The mechanism is simple, explains DIW economist Sonali Chowdhry: the fees increase the costs of intermediate goods. U.S. manufacturers lose competitiveness, and weaker economic activity also reduces demand for foreign goods. Since the 1990s, the construction of trade ships has shifted to China, according to the study. Currently, around half of all newly built trade ships come from China. The EU's market share in newly built trade ships has dropped from 17 percent to less than three percent over the past 30 years. Germany's share fell from about six percent of newly built ships worldwide in 1995 to less than 0.1 percent recently. Perhaps that will change again.

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