On December 19, the SHIPS for America Act was introduced in the U.S. Congress in Washington, D.C. to strengthen the focus on the U.S. maritime industry.
The United States believes their maritime industry needs support. There are approximately 80 ocean-going vessels engaged in international commerce under the United States flag. The U.S. shipbuilding industrial base lacks the capacity to mass produce ocean-going vessels. The need for qualified seafarers was increasing daily. In times of war, the U.S. Merchant Marine will be utilized to transport critical cargo and military supplies, while in times of peace, a strong U.S. Merchant Marine will help strengthen the U.S. supply chain.
This proposed legislation is a comprehensive program to revitalize the U.S. It will provide national oversight and continued funding for the U.S. maritime industry, make U.S.-flagged vessels commercially competitive in international trade, rebuild the U.S. shipbuilding industry base, and expand and enhance the recruitment, training, and retention of seafarers and shipyard workers.
Impact of the SHIPS for America Act on Chinese Imports into the U.S.
With China’s growing influence in global shipping, the U.S. has begun to recognize the importance of maintaining U.S. shipping’s dominant international position and has outlined appropriate regulations for China in the bill.
The imposition of additional taxes and fees on vessels owned or operated by Chinese entities is likely to increase the cost of transporting cargo using Chinese-owned or Chinese-flagged vessels, making them less competitive than U.S.-flagged vessels. Importers may seek alternatives to avoid these additional costs by shifting some of their cargo to U.S. vessels or other non-Chinese carriers.
Raise taxes on repairs made at Chinese shipyards and prevent U.S.-flagged ships from being repaired in China.Encourage the development of additional repair facilities in the United States to meet these needs.
Companies without US-flagged vessels in their fleet will be at a disadvantage, even though only 10% of Chinese exports to the US will be affected, and the requirement will undoubtedly place a significant administrative burden on US importers.
For U.S.-flagged vessels, the bill also gives preferential treatment: if there is a queue of vessels in the port, U.S.-flagged vessels enjoy priority. However, the U.S. Secretary of Transportation may revoke this privilege if the U.S. national interest so requires.
In order to achieve this ratio, contracting strategies and specific booking arrangements will have to be adjusted.
Expanded the Capital Construction Fund to encourage investment in U.S. maritime infrastructure and vessels. It also restricts the use of Chinese-manufactured equipment, thereby potentially reducing Chinese exports of such equipment to the United States.
The U.S. believes that the Chinese government possesses the threat of having access to data collected and stored on the platform, and plans to increase scrutiny and regulation of logistics platforms such as LOGINK, which could affect Chinese logistics companies operating in the United States. It will lead to stricter data and security measures that will affect how Chinese entities manage and track shipments to the United States.
What is Logink?
Logink is a digital logistics information platform developed in China. Currently, it cooperates with more than 20 ports around the world, providing users with one-stop logistics data management, freight tracking, and information exchange needs between enterprises and between enterprises and governments.
The SHIPS for America Act is more about subsidizing the U.S. shipbuilding industry and developing talent to better compete with China in the global shipping industry.
The SHIPS for America Act has made the originally complex supply chain and trade steeply more risky, you now need a professional logistics carrier to undertake the transportation of your goods. linktrans will customize a personalized logistics program for you, to help you in the current unstable shipping trends, safe and stable delivery of your goods to the destination.
20 Dec, 2024
