Independent journal on economy and transport policy
08:37 GMT+2
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PORTS
The U.S. Port Authority Association is advocating the USTR to cancel the additional duty on Chinese STS cranes
In ten years, the value of orders for these cranes would rise from $2.47 billion to $6.68 billion
Washington
May 29, 2025
Yesterday the United States Court of International Trade ruled
whereas the International Emergency Economic Powers Act of 1977
(IEEPA) to which Donald Trump referred to introduce tariffs
to counter foreign trade practices and tariffs withheld
unfair and harmful to the American economy does not give the
U.S. president the power to adopt them, while
in the USA the appeals of numerous companies and
trade associations to cancel or reduce the intensity
of the new duties because they are considered harmful to the economy itself
and for the American companies themselves. Among these exhortations, that
of the Association of U.S. Port Authorities which has
warmly invited the United States Trade Representative (USTR) to
find alternatives to 100% duties on port cranes
ship-to-shore products produced in China and the U.S. government office
proposed in the framework of measures to combat competition
in the maritime, logistics and shipbuilding sectors.
"The application of a new 100% duty on STS cranes
- explained the president and CEO
of the American Association of Port Authorities (AAPA), Cary Devis, in
hearing at the USTR - will not create
out of nowhere a domestic crane manufacturing industry. Will
only increase costs for port authorities
public funds'. "Increase duties on Chinese cranes by a
another 100% - he specified - will not magically revitalize
an American crane manufacturing industry that has been
non-existent for decades. However, it will force the authorities
public dockers to pay more for cranes already
ordered or will have to order shortly to replace equipment
obsolete or to set up new terminals".
The EFA has announced that currently American ports have in
Orders for the takeover of 55 new STS cranes, of which 44 are
cranes from China. In addition, the association estimated that
in the next 1-2 years US ports will have new orders in progress for
32 new STS cranes, including 26 made in China, in the next 3-5 years
orders will rise to 76 STS cranes, including 61 Chinese cranes, and in the coming
6-10 years the new ship-to-shore cranes expected on order will be 43
of which 34 are Chinese.
The Association of American Port Authorities has
calculated what they could be, with the introduction of the
new duty, the additional costs to be borne by national ports. AAPA
recalled that before the duties, STS port cranes produced by the
Chinese ZPMC, which is the world leader in this segment,
They cost about $15 million. The association noted
that if the USTR were to impose an additional 100% duty that would be
would add to the 25% duty introduced in 2024 and the 145%
imposed on most Chinese products, the authorities
American public dockers would have to face an outlay
total of more than $1.78 billion to buy cranes
Chinese STS that have currently already been ordered against
to the $660 million originally agreed with the company
Chinese. In the period of the next 1-2 years the expected orders of
China's new STS cranes are expected to total $390 million,
a figure that the tariffs would raise to 1.05 billion dollars. Thus
the price of orders expected in the period of the next 3-5 years,
estimated at 915 million, would rise to 2.47 billion and the price
of orders expected in the next 6-10 years would grow
from $510 million to $1.38 billion. Over the next few years,
ten years - the AAPA underlined - the price currently expected
for Chinese STS cranes, amounting to over $2.47 billion, with
tariffs would rise to more than $6.68 billion.
"The application of this duty to cranes already
- noted the EFPA - will not discourage the
China's unfair manufacturing practices nor will it encourage
the American production of STS cranes. These cranes have already been
ordered and largely intended to replace equipment
obsolete or to set up new or expanded terminals. American ports
They need these cranes now, but they can't afford 1,782
billions of dollars in unexpected costs. They can't pull themselves
back from these purchases. If they were to pay these fees,
They would have three options. First, they could let the
cranes are covered with dust while they are stored in warehouses
customs fees at an additional cost. Secondly, they could
try to cut expenses elsewhere to cover the costs of these
Rates. Thirdly, ports planning future tenders
they could instead buy used cranes, which are not as
structurally or operationally sound. The result of
Any of these options: Infrastructure projects
lost jobs, obsolete infrastructure and
unsafe and port congestion. The Port of Houston, Texas - has
clarified the association - is facing this sad
situation. They have a contract for eight ZPMC cranes with delivery
scheduled for spring 2026 at a price of 14 million
dollars each. If they were forced to pay the full amount of the
duties on these cranes, they would have to pay as much as 302.4 million dollars
of taxes. This means over $300 million not
invested in infrastructure projects in one of the world's largest ports
big names in the country".
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