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Wallenius Wilhelmsen, a car transporter, warns that US port fees will increase the cost of automakers.

Wallenius-Wilhelmsen, a car transporter, told customers on Wednesday that they could be charged an additional $200 to $300 for each vehicle if they want to ship their vehicles to the U.S.

In mid-October, the U.S. increased port fees for foreign-built vessels as a result of a dispute between China & the U.S. This prompted Wallenius Wilhelmsen to withdraw its financial forecast. The company operates "roll-on/roll off" carriers which ship cars & heavy machinery around world.

Lasse Kristoffersen, Chief Executive Officer of the company, said: "We are clear that this is an extra cost that we have been given that we must pass on to our clients."

The late-October agreement reached between U.S. president Donald Trump and Chinese president Xi Jinping allowed a 12-month reprieve on the tit for tat fees charged by each other to their ships. This delayed changes that could have cost shipping companies millions and disrupted vessel schedules.

Wallenius, however, said that it is still unclear if the suspension includes port fees for roll on/roll off carriers. It also warned that the total cost exposure in the fourth quarter may reach around $100 million without mitigation measures or customer compensation. Marie Mannes reported; Terje Solsvik edited, Louise Rasmussen, Conor Humphries and Conor Humphries provided editing.

(source: Reuters)