South Korean shipping stocks have experienced a strong rally following reports that the U.S. is moving forward with a proposal to impose fees on Chinese shipping companies and vessels.
The news appears to have sparked investor optimism, with many hoping to benefit from the potential indirect gains.
HMM shares were trading at 20,200 won on the KOSPI at 9:09 a.m. on Feb. 24, marking an 8.19% increase from the previous trading day. Other companies, including Heung-A Shipping, STX Green Logis, KSS Line, and Korea Line, also saw significant gains.
The U.S. Trade Representative (USTR) recently revealed plans to impose fees on Chinese shippers and their vessels. Under the proposed measure, shipping companies that operate multiple vessels—including those registered in China—could be required to pay fees of up to $150,000 for each Chinese vessel entering U.S. ports, depending on the ship’s conditions.
According to Bank of America, HMM has the smallest proportion of Chinese-flagged vessels among major global shipping companies, with just 2% of its fleet coming from China. In contrast, Taiwanese shipping lines Wan Hai and Yang Ming have 8% and 10% of their fleets registered in China, while Germany’s Hapag-Lloyd and Denmark’s Maersk each have 14%. The world’s largest shipping company, MSC, has the highest share, with 25% of its fleet consisting of Chinese vessels.
