China Retaliation Deepens Trade Rift as Biodiesel Premiums Slip
Happy Columbus Day, everyone! While Washington appears to signal a thaw in U.S.–China trade rhetoric, Beijing’s retaliatory move under USTR Section 301 will take effect tomorrow and could ripple far beyond container freight. China’s new port fees—starting at $56/t and rising to $157/t by 2028—will apply to any vessel with 25 percent or more U.S. ownership, directly targeting fleets of U.S.-listed owners such as ZIM and Matson. Analysts warn this “wide-net” rule could ensnare dozens of tankers and bulkers indirectly owned through U.S. funds, tightening available tonnage to China and raising freight rates. The U.S., preoccupied with rare-earth supply chains, has so far avoided confronting the measure head-on, while Beijing’s anger over the forced seizure of Nexperia in the Netherlands adds more fuel to the fire. With the Five-Year Plenum set to begin later this month, Chinese negotiators are unlikely to show flexibility in the near term.
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