Korean shipbuilders are anticipating potential benefits following the recent announcement of new port fees imposed on ships manufactured in China. Market analysts suggest that this development will particularly impact the container carrier sector, where Korean firms have struggled to maintain their market presence amid China’s growing influence. According to a report from NICE Credit Investment, a Korean credit rating agency, the new port fees could help Korean shipbuilders close the competitive gap in the container ship market.
This measure was introduced as part of an investigation under Section 301 of the United States Trade Act regarding China’s shipping and shipbuilding industries. The policy, announced by the U.S. Trade Representative, states that vessels operated by Chinese companies will incur a port fee of $50 per net tonnage, while foreign operators of China-built ships will face a fee of $18 per net tonnage, effective from October 14. This new fee structure also includes charges for foreign car carriers, where vessels built outside the U.S. will cost $150 per vehicle, with planned increases in fees over time.
Park Hyun-jun, a senior credit analyst at NICE, noted that while the final fee structure is less severe than originally proposed, it still represents a significant burden for operators of China-built ships. Currently, Chinese shipbuilders hold a notable pricing advantage, selling vessels at 8 to 20 percent lower prices than their Korean counterparts. South Korea, now the second-largest container shipbuilder globally, has seen a decline in its market share—from 31.6 percent in 2021 to just 12.1 percent in 2024—while China’s share has risen dramatically.
As these new fees may deter major shipping companies from ordering vessels built in China, they could increasingly look to Korean manufacturers known for their technological expertise and reliability. The shipping industry has shown a positive reaction, with Korea’s largest shipbuilder, HD Hyundai, discussing a substantial order with Capital Maritime, traditionally a client of Chinese shipyards. Following the announcement of the finalized port fees, Korean shipping-related stocks reacted favorably at market opening, particularly benefiting companies with limited reliance on China-built ships.
For example, HMM, which operates only five China-made vessels in a fleet of 82, saw its stock rise by over 6 percent.