Some Hong Kong-based shipowners are looking to navigate US tariffs and Washington’s escalating trade war with China by changing their vessels’ registration flags to jurisdictions with fewer geopolitical risks such as Panama and Liberia, the Post has learned.
According to industry sources, some shipowners are preparing exit plans to mitigate rising political risks even though a recent executive order by US President Donald Trump did not include an earlier threat to impose a US$1.5 million fee per port call in the United States on Chinese-linked ships. The fees were also supposed to apply to Hong Kong.
The owners’ considerations have cast a shadow on Hong Kong’s development as “three centres and one hub”, that is, an international centre for finance, shipping and trade and as a prominent talent hub.
“There are discussions among some shipowners about changing the Hong Kong flag to Panama and Liberia to minimise political risks, costs and exposure to the US tariffs,” a stakeholder who requested anonymity said on Wednesday.
“Geopolitics is a teething issue, and shipowners are talking about the feasibility of carrying a flag from elsewhere.”
In reply to Post inquiries, the Transport and Logistics Bureau said ship registrations with the Hong Kong Shipping Registry remained “solid, strong and stable”.
