Maersk, the world's second-largest shipping company, is driving a competitive race between South Korea and China for a contract to build up to 12 LNG dual-fuel container ships worth as much as US$2.8 billion. Despite new US port fees targeting Chinese vessels, cost advantages continue to favour Chinese shipyards, reports Seoul's Chosun Daily.

The US will impose port entry fees on Chinese-owned and Chinese-built ships from October 14, charging $50 per ton for Chinese-owned vessels and $18 per ton for Chinese-built ones. A 24,000-TEU ultra-large containership could face fees totalling KRW4 billion (US$2.8 million).

HSBC estimates the financial impact on COSCO and its subsidiary OOCL could reach $2.1 billion this year, equivalent to 5-7 per cent of their annual sales. The regulation aims to curb China's dominance in global shipbuilding and shipping.

Initially, the US Trade Representative considered broader fees but narrowed the scope to Chinese-built ships only. This allows global operators to reroute Chinese-made vessels away from US ports. COSCO has reportedly asked alliance partners CMA-CGM and Evergreen to deploy ships built in South Korea and Japan on US routes.

Despite expectations of a windfall for South Korea, recent orders suggest otherwise. CMA-CGM ordered 10 ships worth $2.1 billion from China's Dalian Shipyard, while MSC placed orders for 20 vessels with five Chinese yards. South Korea lost both bids.

South Korea's shipbuilders tout eco-friendly technology and quality, but cost remains the decisive factor. An industry source said Chinese shipyards offer prices up to 20 per cent lower and strong financial support, making it hard to compete. South Korea now looks to LNG projects in Qatar and Mozambique to offset