Importance Score: 72 / 100 🔴
US Levies Port Fees on Chinese Vessels in Shipbuilding Industry Push
The United States has announced new measures imposing port fees on Chinese ships, aiming to revitalize domestic shipbuilding and counter China’s dominance in the global maritime industry. These fees are designed to address concerns over unfair trade practices and bolster the US economy.
New Fees on Chinese Ships
Beginning mid-October, American ports will charge Chinese ship owners and operators a fee of $50 per ton of cargo. This levy will escalate annually over the subsequent three years.
While there were initial anxieties about potential disruptions to international commerce, reminiscent of previous tariff policies, the finalized fee is less stringent than initially anticipated.
China’s foreign ministry responded through state media, asserting that the fees would inflate costs for American consumers without effectively boosting the US shipbuilding sector.
USTR Rationale
The US Trade Representative (USTR) stated, “China has largely accomplished its dominance objectives, significantly disadvantaging US companies, workers, and the US economy.”
These fees will target vessel owners and operators of Chinese-built ships and will be calculated based on cargo weight, container volume, or vehicle count.
Fee Structure
The fee framework varies depending on vessel type:
- Bulk Vessels: Fees are based on cargo weight.
- Container Ships: Charges depend on the number of containers carried.
- Initial Rate: $50 per ton of cargo, increasing by $30 annually for three years.
- Chinese-Built Ships: Starting fees of $18 per ton or $120 per container, also increasing over three years.
- Non-US Built Car Carriers: $150 per vehicle.
This fee is applied once per voyage, with a maximum of five applications annually per affected vessel.
The USTR clarified that fees will not be based on fleet size or future orders of Chinese ships, as initially considered.
Empty vessels arriving to transport bulk exports like coal or grain are exempt.
Vessels transporting goods between US ports, to Caribbean islands and US territories, along with US and Canadian ships in the Great Lakes, are also excluded.
These new fees are considerably lower than a prior proposal in February that suggested charges up to $1.5 million per port visit for Chinese ships.
Phase Two Actions
The USTR indicated a second phase of actions commencing in three years, designed to favor US-built ships transporting liquified natural gas (LNG). These restrictions will gradually increase over the following 22 years.
This announcement occurs amidst existing disruptions to global trade caused by previous US trade tariffs, according to trade experts.
Impact on Global Trade
A trade group reported that cargo initially destined for US ports from China is being rerouted to European ports.
Businesses have cautioned that these measures could lead to higher prices for American consumers.
Since returning to office, President Trump has implemented taxes up to 145% on Chinese imports. A 10% blanket tariff on imports from other nations is also in effect until July.
The administration stated that combined with existing tariffs, levies on certain Chinese goods could reach 245%.
Congestion at Ports
Marco Forgione, Director General of the Chartered Institute of Export & International Trade, noted that these tariffs have generated “significant build ups” of ships, especially in Europe, leading to “significant congestion” at UK ports.
He stated that more containers are arriving in the UK.
“We’ve observed a diversion of ships from China, initially bound for the US, now redirecting to the UK and the EU.”
In the first quarter of 2025, Chinese imports to the UK rose by approximately 15%, and to the EU by about 12%.
“This is a direct consequence of President Trump’s policies,” he added, emphasizing that uncertainty and increased disruption drive up consumer prices.
‘Increased Cargo to Europe’
Sanne Manders, president of logistics firm Flexport, explained that both tariffs and port strikes in the Netherlands, Germany, and Belgium in early 2025 have “clogged” ports.
UK congestion is “particularly acute in Felixstowe,” while Rotterdam and Barcelona face “significant” congestion in continental Europe.
“If more cargo is rerouted towards Europe, attracting new buyers and further escalating volumes, it could exacerbate congestion,” he suggested. However, he noted that extended terminal operating hours during summer may mitigate some issues due to improved weather conditions.
He indicated shippers are exploring new markets, and there might be a surge of goods to the US to leverage a 90-day window for goods from specific countries.
He posited that US consumers would bear the tariff costs, while European consumers would experience “minimal impact.”
Companies are also likely to restructure their supply chains in response to these changes.