US media: High tariffs force US ports to postpone upgrades
The US government's policy of imposing high tariffs on Chinese made container cranes is disrupting its own port modernization plans. On December 6th, The Wall Street Journal quoted industry insiders as saying that the above-mentioned tariff plan by the United States has forced its port operators to consider delaying the purchase of large modern crane projects and delaying plans for port modernization upgrades. US port operators warn that high tariffs will lead to skyrocketing upgrade costs by tens of millions of dollars.
Last month, the US government announced the suspension of port charges on Chinese ships and also suspended high tariffs on Chinese made container cranes for one year. According to previous plans, the US government will impose a 100% tariff on Chinese made cranes and container chassis trucks, and propose a new tax of up to 150% on certain cargo handling equipment.
Although the high tariff plan has been halted, it has not reassured US port operators. In fact, some American ports are trying to extend the service life of old equipment instead of purchasing modern new equipment. US shipping industry officials have stated that it takes at least two years for cranes to be ordered and delivered, but the suspension of tariffs for only one year is not worth taking the risk of purchasing; In addition, constantly changing trade policies have made investment planning more difficult.
According to statistics from the American Association of Port Authorities in the first half of this year, there are currently no domestic manufacturers in the United States producing terminal container cranes. Industry surveys show that the United States plans to purchase 151 dock cranes in the next 10 years, of which about 80% will be purchased from China. Davis, the president of the American Association of Port Authorities, stated that the American crane manufacturing industry has "disappeared for decades" and imposing high tariffs on Chinese cranes will never "magically revive" the American crane manufacturing industry.
The Wall Street Journal bluntly stated that US government officials are concerned that the US is overly dependent on China for port equipment. In recent decades, China has dominated the maritime industry manufacturing sector, including shipbuilding, container and port crane manufacturing. If imports from China are stopped, it will be difficult for the United States to obtain alternative sources of goods for the time being, and at the same time, cultivating and enhancing local manufacturing capabilities will not be an easy task.
The American Association of Port Authorities stated that currently only a few companies in the world, apart from China, produce port container cranes for international procurement. Including Finland's Koni Crane, Japan's Mitsui Engineering Shipbuilding, and Switzerland's Liebherr. But US port operators say that the cost of these cranes is at least 15% higher than Chinese made cranes, and the combined production capacity of these companies cannot meet the demand for about 20 new cranes in the US every year. Although the US government has been pushing for the establishment of a domestic crane manufacturing industry, US shipping industry officials have stated that it takes several years to build a domestic industry, and the cost of cranes made in the US will be higher than those made in Asia and Europe.