Shipping practices are evolving rapidly, especially in light of recent policy changes aimed at addressing trade imbalances. According to Xclusiv, a new directive will impose port fees tailored for Chinese-connected shipping, slated to begin in October 2025. Specifically, Chinese-owned and operated vessels will incur charges of $50 per net ton, which will escalate annually to $140 by 2028.
For vessels built in China, regardless of ownership, a more lenient fee structure will start at $18 per net ton, rising to $33, with alternatives including per-container charges ranging from $120 to $250. This approach reflects industry feedback and represents a shift from earlier, more aggressive proposals. The stated aim of these port fees is to address China’s so-called “unreasonable” trade practices and its dominance in shipbuilding.
The U.S. Trade Representative (USTR) emphasizes the need to reduce reliance on Chinese manufacturing for critical maritime infrastructure, consequently sending a clear signal favoring American shipbuilding. This move aligns with broader national strategies under both the Trump and Biden administrations to bolster U.S. industrial capabilities. However, the implications of such policies are multifaceted.
To mitigate potential backlash, the USTR has outlined exemptions for certain types of vessels, including those below specified weight thresholds or those operating on short sea routes. Additionally, operators can avoid fees for up to three years by opting for U.S.-built ships, incentivizing domestic shipyard orders. It is noteworthy that the proposals are likely to affect only a small percentage of U.S. shipping activity, with projections suggesting less than 10% of dry bulk and 5% of tanker calls are impacted.
Despite the thoroughness of the announcement, the vague language surrounding the implementation raises concerns about the overall effectiveness and clarity of these proposed fees. If enforced, they could reshape the landscape of global shipping trade, potentially increasing operational costs for Chinese-owned vessels on U.S. routes and giving a competitive advantage to non-Chinese ships. This could encourage innovative ownership structures and compliance strategies as companies navigate the new regulatory environment.