Increasing protectionist tendencies in global trade policy present challenges for German shipping, according to the German Shipowners’ Association (VDR) which warned that national interests must not come at the expense of free global trade flows.
As explained, increased tariffs and restrictive measures aimed at shielding national markets result in disrupted supply chains and rising transport costs. For shipping companies, this translates not only into potentially longer trade routes and higher operational expenses but also considerable planning uncertainty in global goods transportation, as per the association.
These challenges are said to be further intensified by recent protectionist announcements from the United States. The introduction of 25% tariffs on European goods, as announced by President Trump, as well as the US plan to impose multi-million-dollar fees on China-built ships when entering US ports, are causing significant uncertainty in the German and global merchant fleet, VDR said.
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To remind, the Office of the United States Trade Representative (USTR) recently proposed a measure to charge a fee of up to $1.5 million for Chinese-built vessels entering US ports in an attempt to curb China’s dominance in shipping, shipbuilding and logistics sectors. This, along with several other service fees, targets all vessels built in China regardless if they are operated by international shipping companies. The measure also restricts Chinese maritime transport operators.
“It can no longer be ruled out that the US government may increasingly withdraw from security commitments. Thus, the need for Germany to secure its own supply in the long term is also growing. As a strategic response to the changing global trade and security architecture, it is essential to strengthen its own merchant fleet and ensure its continued existence,” VDR highlighted.
The association also mentioned that rising tensions along key international maritime trade routes also negatively affect German merchant ships and block critical sea lanes for German imports and exports.
“As a leading export nation with scarce natural resources, we rely on secure and open trade and shipping routes. A consistent national maritime security strategy, enhanced naval presence, and closer cooperation between security authorities and the merchant fleet are essential. Security comes at a cost – hesitation costs even more,” Martin Kröger , VDR CEO, stressed.
To note, around 62 percent of German exports and 60 percent of imports are handled by sea. With nearly 290 shipping companies based in Germany, a fleet of 1,764 ships, and a gross tonnage (GT) of 47.4 million, the country ranks seventh among the world’s leading merchant shipping nations this year.