October 2nd, 2025 – A sweeping new policy from the Office of the U.S. Trade Representative (USTR) will take effect on October 14th, 2025, introducing port entry fees on vessels that are Chinese-owned, operated, or built. The measure represents a major escalation in maritime trade regulation, designed to reduce U.S. dependence on China’s shipbuilding sector and encourage domestic production.
Fee Structure and Coverage
The policy divides vessels into four non-cumulative categories (“Annexes”), with each ship paying only one applicable fee per voyage rotation—the first U.S. port in a sequence. Fees are capped at five assessments per year per vessel.
- Annex I: Chinese-owned or operated ships will pay $50 per net ton initially, rising to $140 per ton by April 2028.
- Annex II: Chinese-built ships face charges based on the higher of net tonnage or containers discharged—starting at $18/ton or $120/container, increasing to $33/ton or $250/container by 2028.
- Annex III: Non-U.S.-built car carriers will pay $150 per Car Equivalent Unit (CEU).
- Annex IV: U.S. LNG exports must transition over time to U.S.-built LNG carriers.
Exemptions apply to small vessels, short-sea trades, empty arrivals, and select U.S.-flag or specialized ships.
Industry Adjustments and Reactions
The maritime industry is grappling with uncertainty over how fees will be applied in charter agreements and lease structures. Some carriers are already restructuring fleets to avoid exposure. Lines such as Maersk and MSC have replaced Chinese-built vessels on U.S. routes, while COSCO and OOCL—both heavily impacted—plan to maintain U.S. operations despite projected first-year costs exceeding $2 billion, according to HSBC estimates.
While proponents argue the policy strengthens U.S. shipbuilding, critics warn of higher costs for U.S. importers and exporters, potentially compounding existing supply chain pressures.
Chinese Countermeasures
In response, China’s State Council recently amended maritime regulations to permit penalties and restrictions on vessels from nations targeting its shipping sector. The new rules—effective immediately—also expand control over maritime data and services, signaling potential reciprocal measures.
What Stakeholders Should Do
Shippers and carriers are urged to:
- Review contracts to clarify liability for new fees.
- Model financial impacts under different fleet compositions.
- Explore alternate routings, such as via Canadian or Mexican ports.
- Monitor forthcoming USTR and CBP guidance, expected soon, including FAQs from the Section 301 investigation into Chinese maritime practices.
As implementation nears, industry observers say the policy could reshape global shipping strategies and further entrench the maritime divide between the U.S. and China.
