(Nov 10): The US and China suspended port fees on each other’s ships for one year and paused probes into maritime practices, in another sign of easing tensions between the world’s two largest economies.
The Trump administration paused a probe into China’s shipbuilding industry, and in turn, Beijing said it was shelving its own investigation and putting off special port fees on US vessels. China also said that it put on hold sanctions on US units of a major South Korean shipbuilder, Hanwha Ocean Co.
The stand-down in tensions over maritime issues tallies with a rapprochement in the broader confrontation between Washington and Beijing after a summit between the countries’ leaders. While shipping is not among the highest-profile issues, most global trade is carried by sea and the industry is a cornerstone of global commerce. Still, analysts cautioned that risks remained.
“As long as the suspension remains, the potential risk to upend global shipping remains,” said Jayendu Krishna, a director at Drewry Maritime Services, which advises shipping companies on business strategies.
In South Korea, Hanwha’s shares rose as much as 2.9% after the announcement from Beijing. “We hope this move will contribute to further strengthening our relationships with business partners in China,” a spokesperson said.
The US will continue to negotiate with China about the issues raised in its investigation, the US Trade Representative said.
The imposition of port fees had jolted global shipping, raised freight rates, and impeding some goods. China’s investigation was among retaliatory measures announced in mid-October, and aimed at assessing the impact of the US probe into the nation’s maritime sector.
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