US port fees on Chinese ships likely to benefit Korea

Korean shipping companies and shipbuilders are emerging as potential beneficiaries of the U.S. Trade Representative's (USTR) recent decision to impose new port fees on ships built or operated by Chinese firms. Citing the low share of Chinese-built vessels in HMM's fleet, analysts predict that more freight owners will turn to Korea's largest container carrier when shipping goods to the United States. "Chinese-built vessels account for only 6 percent of HMM's entire container fleet — the lowest among global shipping companies," Hana Securities analyst Ahn Do-hyun said. "Since HMM has not placed any orders with Chinese shipyards, it is unlikely to be affected by U.S.-China tensions." Among HMM's 83 container ships, five were built in China. Two of those are rented and will be returned soon, while the remaining three are used mainly for Southeast Asian routes. "HMM is expected to gain the upper hand over competitors in securing cargo volume, as it is free from U.S. regulations on Chinese-built ships," Meritz Securities analyst Oh Jung-ha said. Korean shipbuilders are expected to benefit from