Taiwan Expands Container Port Capacity to Attract More Transhipment Traffic amid US-China Trade War

In a bid to capitalise on the shifting global trade dynamics amid the US-China trade war, Taiwan is looking to expand its port infrastructure and incentivise shipping lines to boost transhipment volumes. Transport and Communications Minister Chen Shih-kai announced plans to increase port capacity by adding more berths at the Kaohsiung and Keelung ports, two of Taiwan’s major shipping hubs. This move is aimed at accommodating the growing demand for transshipment, especially from Southeast Asia, as factories in the region race to complete export orders before the 90-day grace period on US tariffs expires.

To further attract shipping lines, including non-Taiwanese operators, Taiwan International Ports Corporation (TIPC) has announced an incentive program offering at least $600,000 to companies transporting containers between Taiwan and the US.

Minister Chen also mentioned that while local shipping giants like Evergreen, Yang Ming, and Wan Hai Lines do not currently plan to increase trans-Pacific sailings, Taiwan’s national lines may step up their services if outbound shipments from Southeast Asia spike in the short term.

The Taiwanese government’s proactive approach comes as factories in Southeast Asia are accelerating shipments to the US to avoid higher tariffs. In 2022, Taiwan’s ports handled 590,000 TEUs in containerised exports to the US, with another 785,000 TEUs transshipped.