February 27th, 2025 – The U.S. government is proposing a port usage fee on Chinese-built and Chinese-operated vessels calling at U.S. ports, aiming to generate billions in tariffs from the container shipping industry. Additionally, exporters could face rising costs if new regulations mandating the use of U.S. fleets are implemented.
If enacted, these proposals could significantly increase expenses for U.S. shippers and disrupt the global containerized supply chain.
The proposed port fees primarily target China’s ocean carriers but would also impact the broader maritime industry, which depends on China’s shipbuilding sector.
On Friday, the U.S. Trade Representative (USTR) released the findings of a year-long investigation into China’s shipbuilding and maritime logistics industry, stating that China has implemented targeted strategies to expand its global presence.
Initiated during the Biden administration in response to a petition from U.S. manufacturing unions, the investigation detailed how state-backed support has propelled China’s share of global shipbuilding from under 5% in 1999 to over 50% in 2023. According to the USTR, Chinese companies now control about 20% of the world’s shipping fleet.
The USTR has outlined a series of penalties and corrective measures, now open for public comment until March 24.
Key proposals include:
- A $1 million fee per port call for Chinese-operated ships in the U.S.
- A $1,000-per-net-ton fee based on a vessel’s carrying capacity.
- For other carriers, a sliding entrance fee up to $1.5 million per Chinese-built vessel, depending on the percentage of their fleet constructed in China.
- An additional $1 million per vessel fee for carriers with substantial orders from Chinese shipyards.
Conversely, the USTR proposes incentives for U.S.-built and U.S.-operated ships, including:
- A $1 million refund per port call for U.S.-built vessels.
- Cargo preference policies requiring an increasing share of U.S. exports to be transported by U.S. fleets.
Under the proposed regulations, at least 1% of U.S. exports would be required to move on U.S.-flagged vessels within the first two years, with escalating percentages in subsequent years. By the third year, additional requirements would mandate exports to be transported on both U.S.-built and U.S.-flagged ships.
After the public comment period, the USTR will hold a hearing, and the measures could take effect within six months.
While affected companies can apply for fee waivers, and the actions could be delayed through trade negotiations, the proposed tariffs and mandates would have widespread implications for global container shipping, impacting nearly every non-U.S. ocean carrier.
Trans-Border will continue to monitor the situation and will advise customers accordingly. Should you have any questions, send us an email or give us a call at 518-785-6000.
