UPDATED: October 10th, 2025 – China has announced retaliatory port fees on U.S.-linked vessels, escalating tensions in the ongoing U.S.-China trade dispute over maritime and shipbuilding practices. The new measures directly mirror those introduced by the U.S. Trade Representative (USTR) under Section 301 of the Trade Act of 1974 and are set to take effect the same day.
Key Points:
Effective Date: China’s new port fees take effect October 14th, matching the start of U.S. port levies on Chinese-owned or -built ships
Authority & Background: The U.S. fees were announced in April under Section 301 of the Trade Act of 1974, following a USTR investigation that found China used subsidies and state control to dominate global shipping and shipbuilding
Scope of China’s Fees: Applies to U.S.-flagged, U.S.-built, and U.S.-operated or -owned vessels, including those where more than 25% of ownership, voting rights, or board seats are U.S.-based
Fee Structure:
$56 per net ton initially (vs. $50 under the USTR schedule)
Increases to $90 ($80 USTR) on April 17th, 2026
Rises to $123 ($110 USTR) on April 17th, 2027
Peaks at $157 ($140 USTR) on April 17th, 2028
Application Limits: Fees apply only on the first Chinese port of call per voyage and are capped at five voyages per vessel per year
Affected Carriers: Directly impacts Matson, Maersk Line Limited (U.S. subsidiary of A.P. Moller-Maersk), and APL (CMA CGM). Other companies with U.S. ownership stakes may also be affected
Possible Additional Impact:
Zim Integrated Shipping Services could fall under the policy as U.S. entities appear to own more than 25% of its shares
Seaspan, operating about 100 chartered vessels, may also face charges due to its U.S.-linked parent company Poseidon, which has slightly over 25% U.S. ownership
Economic Impact: While the financial burden on U.S. lines remains unclear, analysts note it is significantly less than the potential $2.1 billion cost projected for China’s Cosco and OOCL under U.S. tariffs, per HSBC estimates
Trans-Border will continue to monitor the situation and advise customers accordingly. Should you have any questions or concerns, please contact us or give us a call at 518-785-6000.
October 9th, 2025 – The United States is advancing a plan to collect new port fees that place responsibility on ocean carriers—not U.S. Customs and Border Protection (CBP)—to calculate and remit payments.
In a notice issued Friday, CBP instructed carriers to identify China-owned, operated and built vessels calling at U.S. ports and begin paying the new fees starting October 14th. Operators must pay the fee on or before the entry of the vessel at the first U.S. port, however CBP strongly encourages payment at least three business days in advance, warning that vessels without proof of payment may face delays in clearance or cargo operations.
The port fees stem from a determination by the Office of the U.S. Trade Representative (USTR) that China’s extensive support for its maritime, logistics, and shipbuilding industries places unreasonable burdens on U.S. commerce and is therefore actionable under Section 301 trade law. The measure imposes a range of fees of $50 per net ton on China-owned or -operated ships for each voyage to the United States to $18 per net ton, or $120 per container discharged, for Chinese-built ships. Roll-on/roll-off carriers will pay $14 per net ton. These fees will increase by $5 per ton annually until April 2028.
Despite the potentially steep costs, China’s shipping leaders have chosen not to pass the expenses on to customers. Cosco Shipping, the country’s flagship carrier and the world’s fifth-largest container line, along with its Hong Kong-based subsidiary OOCL, confirmed that they will continue operating as normal without adding surcharges. The decision signals confidence that the companies can absorb the new costs, which analysts estimate could reach $2.1 billion annually by 2026. These losses may be offset by continued state support from Beijing.
While Cosco and OOCL remain firm in maintaining services to U.S. ports, other liner operators are shifting their schedules and dropping calls to reduce exposure to the new fees. Beijing, meanwhile, has reinforced its own stance by passing new maritime legislation in late September that authorizes retaliatory port fees and allows Chinese authorities to deny port or data access to vessels from countries deemed to be discriminating against China. The move underscores China’s readiness to respond in kind and adds another layer of complexity to the escalating maritime dispute.
The broader shipping market has continued to weaken, with container freight rates falling sharply following China’s Golden Week holiday. Trans-Pacific spot rates dropped to loss-making levels as capacity growth outpaces demand. Asia–U.S. West Coast rates fell 16% to $1,554 per forty-foot equivalent unit (FEU), while East Coast rates declined 18% to $3,260. Asia–Europe and Asia–Mediterranean routes also saw significant drops, with rates roughly 60% below last year’s levels.
Global container lines introduced an additional 1.18 million TEUs of capacity in the first half of 2025, up nearly 4% year over year, fueling downward pressure on freight rates. Analysts note that even with ongoing Red Sea diversions, the surge in new ships is eroding pricing power, with further capacity expected to return to service once regional conflicts subside.
As Washington and Beijing double down on competing maritime strategies, carriers now face a volatile mix of regulatory pressure, surplus capacity, and geopolitical uncertainty that could have major impacts on global shipping patterns while this dispute plays out.
Trans-Border will continue to monitor the situation and advise customers accordingly. Should you have any questions or concerns, please contact us or give us a call at 518-785-6000.
