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Investing.com -- Shares of Genco Shipping & Trading Ltd (NYSE:GNK) climbed 4.2% as the company indicated its readiness to adapt to potential US tariffs on Chinese ships. In an interview today on Bloomberg Television, CEO John Wobensmith outlined Genco’s strategy to either reposition its fleet or pass on the costs to US exporters.
The company, which operates a fleet with many Chinese-built ships, is considering its options in response to the Trump administration’s proposed measures to counter China’s maritime dominance. Wobensmith stated that Genco Shipping could redirect its vessels to other markets, noting that only 10% of its revenue is generated from the US, with the remaining 90% coming from international trade.
The proposed US fees have raised concerns about increased costs for shippers and consumers. Genco Shipping has proactively included clauses in its charter agreements to ensure that any additional tolls or port fees resulting from the new tariffs would be borne by the end users. This move aims to shield the company from the direct financial impact of the tariffs.
Wobensmith also commented on the challenges facing the US shipbuilding industry, attributing its lag behind China’s industrialization to higher construction costs in the US and a shortage of shipyards and skilled workers. According to the CEO, reviving the domestic shipbuilding sector could take decades.
The potential tariffs are expected to lead to higher freight rates, which Genco Shipping plans to pass on to cargo owners, ultimately affecting consumer prices. This strategy appears to have reassured investors, leading to the uptick in the company’s stock price.
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