The United States Trade Representative (USTR) has proposed a new port fee of up to $1 million per vessel call for Chinese shipping companies at U.S. ports. Additionally, non-Chinese shipping firms will also face higher fees if their fleets include any ships built in China.
Targeting China’s Maritime Dominance
The higher port fees are part of U.S. efforts to counter China’s dominance in the global shipbuilding and maritime industry.
On February 21, the USTR announced its plan to impose higher port fees on:
- Chinese shipping companies
- Ships built in China
- Any operator with at least one China-built vessel in its fleet or new orders placed at Chinese shipyards
This proposal follows a USTR investigation launched in March 2024 at the request of U.S. labor unions. By January 2025, the USTR concluded that China’s dominance in shipbuilding, maritime transport, and logistics was weakening U.S. competitiveness and distorting trade.
China’s Growing Shipbuilding Market Share
According to the USTR, China’s share of global commercial shipbuilding has increased from less than 5% in 1999 to over 50% in 2023. As of January 2024:
- China owned 19% of the world’s commercial fleet
- Controlled 95% of global container production
The USTR is now seeking public comments on the proposal until March 24, after which a public hearing will be held. Former President Donald Trump will make the final decision on whether to implement the new port fee.
New Fee Structure for China-Linked Vessels
The proposed port fee applies to any Chinese-owned shipping company, regardless of where their ships were built.
- Fee per vessel call: $1,000 per net tonnage, up to a maximum of $1 million per visit
- Most commercial vessels calling at U.S. ports exceed 1,000 net tons, meaning Chinese shipping companies will pay $1 million per call
Impact on Shipping Routes
Chinese shipping companies typically call at multiple U.S. ports per voyage, making this a significant cost burden.
- Example: Asia-to-U.S. East Coast routes typically stop at 2-3 ports per journey, leading to fees of $2-3 million per voyage
Foreign Shipping Companies Using Chinese-Built Ships Also Affected
The USTR proposal extends to foreign shipping companies operating China-built vessels, even if those vessels never call at U.S. ports.
Port fees will be determined based on the percentage of China-built ships in a company’s global fleet:
| China-Built Ships in Fleet | Port Fee Per Vessel Call |
|---|---|
| >50% | $1 million |
| 26-49% | $750,000 |
| 1-25% | $500,000 |
This means that even companies with just one China-built ship will still be subject to U.S. port fees.
Alternative Proposal
The USTR also proposed an alternative fee structure, where any shipping company with at least 25% China-built ships in its fleet would be charged $1 million per port call.
Industry Response & Potential Workarounds
Some shipping operators may restructure their fleets by separating China-built and non-China-built vessels into different subsidiaries, ensuring that only non-China-built ships call at U.S. ports.
This move could accelerate the formation of a “parallel fleet” system, where shipping firms segregate their operations to avoid U.S. restrictions.
Port Fees Apply to Ships Under Construction in China
The USTR also seeks to impose port fees on any shipping operator that has ships currently under construction in Chinese shipyards, scheduled for delivery within 24 months of the fee implementation.
Port fees will apply based on the percentage of new vessel orders placed in China:
| New Vessel Orders in China | Port Fee Per Vessel Call |
|---|---|
| >50% | $1 million |
| 26-49% | $750,000 |
| 1-25% | $500,000 |
U.S. Prioritizing American-Built Ships for Exports
The USTR’s proposal also includes a priority system requiring U.S. exports to be shipped on American-built vessels or vessels operated by U.S. maritime firms.
- At least 1% of total U.S. exports must be carried on U.S.-flagged ships in year one
- 3% by year two
- 5% by year three (with at least 3% on U.S.-built ships)
- By year seven, at least 15% of U.S. exports must be carried on U.S.-flagged vessels, with 5% on U.S.-built ships
To implement this plan, the U.S. may need to reflag foreign-owned ships to U.S. registry, raising concerns about crew availability.
Additionally, American shipyards must ramp up production, despite not having built a new oil tanker since 2017 or a liquefied natural gas (LNG) carrier since 1980.
Conclusion
The proposed port fees could significantly impact global shipping, forcing Chinese and foreign operators to restructure their fleets or absorb higher costs. Meanwhile, the U.S. push to prioritize American-built ships signals a long-term shift in maritime trade policies.
📌 Source: Saigon Economic Times