Yahoo Finance·2025-09-18 22:08Core Viewpoint - The U.S. is implementing new fees on Chinese ships, which will significantly impact Cosco Shipping and its operations, yet the company is committed to maintaining service reliability and competitive rates [1][2][3]. Group 1: New Fees and Financial Impact - The U.S. Trade Representative will charge Chinese vessel operators an extra $50 per net ton starting October 14, 2023, with additional fees increasing to $140 per net ton by 2028 [1]. - Cosco Shipping and its subsidiary, Orient Overseas Container Line (OOCL), are projected to pay $2.1 billion in fines in 2026, which could reduce Cosco's revenue forecasts by 5.3% and erode 74% of consensus earnings forecasts [4]. Group 2: Company Response and Strategy - Cosco Shipping reassured customers of stable and reliable services despite the operational challenges posed by the new fees, emphasizing its commitment to maintaining service quality and capacity [2]. - The company is actively enhancing its product portfolio to adapt to the evolving demands of the U.S. market, although specific changes were not detailed [2]. - OOCL is looking to expand its business opportunities in Southeast Asia and South America in response to the anticipated impact of the fees [5]. Group 3: Operational Details - All approximately 70 vessels deployed by Cosco on trans-Pacific services were built in China, with 18% of total cargo volume, including OOCL, being utilized on the trans-Pacific trade lane in the first half of 2025 [6].