STOCKHOLM (Reuters) -Automakers transporting their cars to the U.S. could face $200 to $300 per vehicle in additional costs, the CEO of car carrier Wallenius Wilhelmsen told Reuters on Wednesday, as
US Port Fees Drive Up Costs for Automakers, Warns Wallenius Wilhelmsen
Impact of US Port Fees on Automakers
STOCKHOLM (Reuters) -Automakers transporting their cars to the U.S. could face $200 to $300 per vehicle in additional costs, the CEO of car carrier Wallenius Wilhelmsen told Reuters on Wednesday, as the company seeks to pass on new U.S. port fees to customers.
Overview of Increased Costs
Higher-than-expected U.S. port fees on foreign-built ships took effect in mid-October as part of a trade dispute between China and the U.S. That prompted Wallenius Wilhelmsen, which operates "roll-on/roll-off" carriers that ship cars and heavy machinery worldwide, to withdraw its financial outlook.
Trade Dispute Background
"We're clear that this bill is an additional cost we've been given and that we need to pass on to our customers," Chief Executive Lasse Kristoffersen said.
Future Implications for Shipping
A late-October agreement between U.S. President Donald Trump and Chinese President Xi Jinping granted a 12-month reprieve from the tit-for-tat fees on each other's ships, delaying changes that could cost shipping companies millions of dollars and disrupt vessel schedules.
But Wallenius said on Wednesday it was still unclear whether the suspension covers port fees for roll-on/roll-off carriers, and warned that its total cost exposure for the fourth quarter could reach about $100 million before mitigation measures and customer compensation.
(Reporting by Marie Mannes; editing by Terje Solsvik, Louise Rasmussen and Conor Humphries)
