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Carol Yang

The Trump administration on Thursday finalised port fees on Chinese vessels docking in the US, a move that is likely to threaten the global shipping industry and trade.
The decision has prompted Chinese shippers to rush to review the 42-page document released by the United States Trade Representative (USTR) office. The phased plan targets Chinese-owned, operated and built ships, and fees will be incrementally raised. Initial assessments suggest it could lead to higher fees per port call than an earlier proposal.
In response to the USTR decision, Lin Jian, spokesperson for China’s Ministry of Foreign Affairs, said the measures would raise shipping costs, disrupt global supply chains, harm other countries and fuel inflation in America.
“It will not revitalise the shipbuilding industry in the US,” Lin said at a media briefing on Friday.
“China will take necessary measures to safeguard its legitimate rights and interests.”
The revised plan unveiled on the USTR website offered a 180-day grace period and shielded domestic exporters. But it remains stringent for Chinese operators and vessels.
Chinese operators and shipowners have to pay US$50 per net ton for vessels entering US ports from October 14. The fee will increase annually to US$140 by April 2028 and apply regardless of where the ships were built.


The USTR did not specify the fee for Chinese operators’ containers.
The port fee is lower for Chinese-built vessels – starting at US$18 per net ton or US$120 per container from October 14. This will gradually increase to US$33 per net ton or US$250 per container by April 2028.
The fees will be charged up to five times per year for each vessel and will be assessed at the first US port of entry, in a bid to prevent ships from bypassing smaller ports within the country, according to the USTR.
Foreign-built automobile carriers will also be charged US$150 per car equivalent unit after the 180-day grace period.
Chinese carriers China Ocean Shipping (Group) Company (COSCO) and Orient Overseas Container Line (OOCL) “will be hit harder than others”, said Lars Jensen, founder and chief executive of container shipping consultancy Vespucci Maritime.
He said the USTR’s decision is likely to cause Ocean Alliance, which is comprised of four major global container shipping companies – COSCO, OOCL, Evergreen and CMA CGM – to adjust its network. Non-Chinese members will operate US-bound services as much as possible, he added, but warned the new port fees will increase pressure on Chinese-vessels after US regulators scrapped the upper limit of US$1-1.5 million from the February version.
“Broadly speaking, for some of the largest container vessels in the world we might be looking at more than US$10 million per call to the US.”
Other carriers arriving at US ports with Chinese built vessels can expect fees of up to US$4 million per call, he said.


The USTR has also targeted LNG carriers, with plans to restrict the transport of liquefied natural gas via foreign vessels. The restrictions will take effect three years later and increase incrementally over 22 years.
Several measures have been eased compared to previous proposals. That includes exemptions for vessels with a capacity below 4,000 TEU and voyages shorter than 2,000 nautical miles.
The fee on Chinese-built ships could be waived if the operator orders a US-built vessel equivalent in size.
The announcement on Thursday also excluded a previously proposed fee on non-Chinese-built vessels that would have charged operators for placing orders in Chinese shipyards.
To reduce the impact on the US economy and industries, ships owned by American companies and specialised export vessels will be exempt from the new port fees.
In addition, USTR has proposed up to a 100 per cent tariff on ship-to-shore cranes and cargo handling equipment from China.
Clarksons Research has revised down its forecast for new ship orders in 2025, with a sharp year-on-year decrease of 30 per cent as investors hold back due to concerns over evolving US trade policies.
Meanwhile, President Trump said on Thursday that Beijing and Washington were in talks and that a deal could be reached soon. But the World Trade Organization warned on Wednesday in its latest report that “the outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty.”
Based on the duties currently in place and taking into account Washington’s 90-day suspension of “reciprocal tariffs”, the WTO forecasts the global merchandise trade will decline by 0.2 per cent in 2025 – down from its previous estimate of 2.7 per cent growth.
The WTO also expects exports in North America to decline in 2025 by 12.6 per cent and imports to fall by 9.6 per cent.
The US only accounts for 0.1 per cent of global shipbuilding while China produces more than the rest of the world combined, USTR said in a post on X.
China captured 70 per cent of new shipbuilding orders last year, followed by South Korea at 17 per cent and Japan at 5 per cent, according to data from Clarksons.


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Forecasters warn of global repercussions as Washington takes aim at China’s shipbuilding dominance


Forecasters warn of global repercussions as Washington takes aim at China’s shipbuilding dominance.
