US Implements New Port Fees for Chinese Ships Amid Trade Tensions

The US Trade Representative has announced impending port fees for Chinese ships, effective in 180 days, aiming to rejuvenate domestic shipbuilding and counter China's maritime influence. The fees will be applied per voyage and are expected to raise concerns about further disruption to global trade.

The Trump administration has announced a significant new policy aimed at Chinese maritime operations by imposing port fees on vessels built in China. This initiative is part of a broader strategy to revitalize shipbuilding in the United States and combat China's prevailing dominance in the maritime industry. According to the US Trade Representative (USTR), the new fees will be initiated in 180 days and will escalate in subsequent years.

While the announcement is less stringent than a previous proposal from February that suggested charges of up to $1.5 million per vessel per American port, the current fees will still introduce notable costs. These fees, which will depend on various factors such as cargo weight, container counts, or vehicle numbers for each ship, aim to level the playing field between US and Chinese enterprises.

Initially, Chinese ship owners and operators will be charged $50 per ton of cargo, with an annual increase of $30 per ton for the next three years. Additionally, ships built in China will incur a starting charge of $18 per ton or $120 per container, with similar annual increments. Non-US vessels transporting vehicles will face a fee of $150 per vehicle as well. To minimize disruption, the fee will only be applied per voyage, capped at six times annually.

The USTR has also indicated a future plan to favor US-built vessels for liquefied natural gas (LNG) transportation after three years, leading to further restrictions over two decades. However, concerns have been raised about potential global trade disruptions, particularly with China's goods being rerouted away from US ports towards Europe. As a result, businesses have warned that these measures could inflate prices for American consumers.

Experts are already noting repercussions from ongoing US tariffs on Chinese imports, causing significant vessel congestion in European ports, with reports of sharp increases in Chinese imports to the UK and EU. Logistics professional Sanne Manders highlighted that recent tariffs and port strikes across Europe have exacerbated shipping delays.

With tariffs on some Chinese imports potentially soaring to 245% following the announcement of new fees, analysts predict a shrinking of global trade. While US consumers may bear the financial burden of increased tariffs, experts suggest that European consumers may encounter minimal impact, despite ongoing shifts in supply chains.