The United States has announced plans to implement significant port fees on Chinese-built and Chinese-operated vessels, aiming to counter China’s dominance in global shipbuilding and bolster the U.S. maritime industry.
Key Details of the Policy:
Fee Structure: Initially proposing fees up to $3.5 million per docking, the U.S. Trade Representative (USTR) has revised the plan in response to industry concerns. The updated fees, set to commence in mid-October 2025, will be calculated based on cargo weight or container count, with a cap of five assessments annually per vessel. Operators committing to purchasing U.S.-built ships may receive fee waivers .
Scope of Application: The fees target vessels constructed in Chinese shipyards or operated by Chinese maritime companies. Additional charges will apply to non-U.S.-built car carriers, and in three years, to liquefied natural gas
Exemptions: Ships operating between U.S. domestic ports, the Caribbean, U.S. territories, and Great Lakes ports are exempt. Empty bulk commodity carriers and certain regional routes also receive exemptions .
Reactions and Implications:
Industry Concerns: U.S. port authorities and trade associations warn that the fees could increase shipping costs, disrupt supply chains, and lead to higher consumer prices. They argue that the policy may not effectively revive domestic shipbuilding in the short term .
International Response: China’s Ministry of Commerce has criticized the proposal, stating it could disrupt global supply chains and violate World Trade Organization rules. China warns of potential retaliatory measures to safeguard its interests .
Strategic Considerations: The policy is part of a broader U.S. strategy to reduce reliance on Chinese maritime infrastructure and enhance national economic security. However, experts caution that rebuilding U.S. shipbuilding capacity will require substantial time and investment .
