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Photo = Hyundai Glovis Car Carrier Vessel (Hyundai Glovis) |
[Alpha Biz= Paul Lee] Seoul, October 14 — The United States’ new port entry fee on foreign-built car carriers is expected to impose an annual burden of around ₩200 billion ($145 million) on Hyundai Glovis, Hyundai Motor Group’s logistics arm, in addition to impacting Hyundai Motor and Kia’s export profitability.
The move, introduced as part of Washington’s “America Shipbuilding Revival Plan,” is designed to penalize non-U.S.-built automotive carriers and promote domestic shipbuilding. However, given that almost all global car carriers are foreign-built, the measure effectively targets the entire global auto shipping industry.
$46 Per-Ton Fee on Foreign-Built Car Carriers
According to industry sources, beginning October 14 (local time), the U.S. government is imposing a $46 (₩66,000) fee per ton on all car carriers built outside the U.S.
For Hyundai Glovis — which operates 96 car carriers (35 owned, 61 chartered) — about 30 vessels regularly service U.S. routes.
Each 7,000-CEU (car equivalent unit) vessel, weighing 19,322 tons, would now face $888,812 (₩127 million) per entry in fees.
With dozens of voyages made annually, Hyundai Glovis alone could face approximately ₩200 billion in additional annual logistics costs.
Ripple Effects on Hyundai and Kia
The new fee adds to the growing financial strain caused by stalled Korea-U.S. tariff negotiations and 25% import tariffs already levied on Korean-built vehicles.
Analysts warn that this could further erode profit margins for Hyundai Motor and Kia, particularly for export models shipped from Ulsan, Gwangyang, and Pyeongtaek to the U.S. market.
Industry observers note that Hyundai Motor Group’s vehicle logistics model, which relies heavily on Hyundai Glovis for U.S. exports, makes the conglomerate particularly vulnerable to these policy shifts.
Industry Concerns
One shipping industry executive commented:
“Since there are virtually no U.S.-built car carriers in operation, this policy effectively taxes every major automaker that exports vehicles to the United States.”
While the measure aligns with Washington’s broader efforts to onshore manufacturing and shipping capacity, Korean industry officials warn that sustained cost pressures could weaken the competitiveness of Korean automakers in the world’s second-largest car market.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
