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United States

US eases ship fee plan on China

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  • The U.S. scaled back its plan to impose up to $1.5 million in port fees on Chinese-built ships after industry backlash, introducing exemptions and a phased fee structure.
  • The initiative aims to reduce reliance on Chinese shipbuilding, support domestic maritime industries, and address national security concerns.
  • Trade groups and foreign governments, including China, have warned the move could increase shipping costs, disrupt supply chains, and violate international trade rules.

[WORLD] The United States has adjusted its proposed policy to impose significant port fees on Chinese-built vessels following substantial opposition from the global maritime industry. Initially, the plan aimed to charge up to $1.5 million per port call for ships constructed in China. In response to concerns from exporters, vessel owners, and shippers, the U.S. Trade Representative (USTR) has scaled back the measure to mitigate potential economic impacts. ​

Revised Fee Structure and Exemptions

Under the revised policy, the fees will be calculated based on net tonnage or per container and will gradually increase over three years, starting on October 14, 2025. Exemptions have been introduced to alleviate concerns:​

Ships operating on U.S. domestic routes, including those serving the Caribbean, U.S. territories, and Great Lakes ports, will be exempt.​

  • U.S.-based carriers such as Matson and Seaboard Marine will not be subject to the fees.​
  • Foreign ships arriving empty for exports will also be exempt. ​

Background and Rationale

The proposed fees are part of a broader initiative to reduce China's dominance in global shipping, revitalize the U.S. shipbuilding industry, and enhance national economic security. An investigation by the USTR revealed that China's share of global shipbuilding tonnage increased from 5% in 1999 to over 50% in 2023, attributed to substantial state subsidies and preferential treatment for state-owned enterprises.

Industry Reactions

While some view the policy as a step toward revitalizing U.S. manufacturing and maritime capacity, trade associations have expressed concerns about potential impacts on consumer prices and international trade costs. The National Retail Federation and the National Association of Manufacturers have warned that the fees could lead to higher costs for U.S. consumers and disrupt supply chains. ​

Global Implications

The proposed fees have also drawn international attention. China's Ministry of Commerce has cautioned that such measures could disrupt global supply chains and adversely affect the U.S. economy and employment. The ministry emphasized that the U.S. approach violates World Trade Organization rules and urged the United States to reconsider its stance. ​

As the implementation date approaches, stakeholders across the maritime industry are closely monitoring developments. The final decision on the policy is expected to be made after a public comment period and hearings scheduled for later this year.​


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