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US port operators try to reduce the expected high tariffs on Chinese-built cranes

The U.S. Seaport Operators are requesting extra time for the implementation of pending tariffs against towering ship to shore cranes. They expect that President Donald Trump’s administration will follow through with a promise to ban this vital cargo handling equipment.

In early this year, the United States Trade Representative proposed tariffs up to 100 percent on these cranes. This was after China sucked up market share to gain commercial and military dominance in the oceans. China, through its state-owned Shanghai Zhenhua Heavy Industries(ZMPC), has now dominated the global market. It has also supplied 80% of ship-to shore cranes to the United States. ZPMC operates more than 200 cranes across two dozen U.S. port locations, including Houston Los Angeles, and New York. Each crane costs between $10 million and $20 million. The Trump administration has made it a priority to stop this trend. In meetings, officials said they would put an end to these purchases. Carl Bentzel is the president of the National Association of Waterfront Employers, which represents terminal operators, and other groups.

Bentzel responded, "I have been operating on the assumption that this is the minimum." When asked if he anticipated the tariff rate would be around 100%, Bentzel replied, "I have been operating under that position. This is basically a ban on using Chinese-made cargo equipment."

USTR and White House didn't immediately comment.

Trump isn't the first U.S. president to pressure ports to purchase cranes at higher prices from manufacturers who have ties with U.S. Allies. These include Konecranes in Finland, Mitsui E&S in Japan, and Liebherr, based out of Switzerland.

Joe Biden placed 25% tariffs in 2024 on cranes that connect ship to shore from China after the Federal Bureau of Investigation, the National Security Agency and the Cybersecurity and Infrastructure Security Agency all publicly announced that China had sought to preposition vulnerabilities in American critical infrastructure including port equipment.

Officials from the United States also warned that software, modems and other technologies in this equipment could be used to spy on military operations or as kill switches for port operations.

Ports and terminal operators continue to buy Chinese cranes despite their lower cost.

The inaction of the port operators is based on the desire to save money in the short term. However, they are underestimating the cost in the long run. William Henagan was the director for critical infrastructure in the National Security Council during Biden's tenure.

In May, U.S. port operator and ZMPC representatives wrote to USTR to say that security concerns related to cranes were out-of-proportion to the risks. In May, USTR received letters from U.S. port operators and representatives of ZMPC stating that security concerns related to the cranes were out of proportion with the risk.

NAWE, an industry organization that represents terminal operators, has been working hard to reduce the impact of new tariffs. They are asking for exemptions on previously ordered cranes, and for a transitional period before the new duties take effect. Bentzel stated, "We have chosen to work together."

(source: Reuters)