US Announces Port Fees for Chinese Ships to Boost Local Shipbuilding

The U.S. Trade Representative has outlined a strategy that includes imposing port fees on Chinese ships, set to start in 180 days. This initiative seeks to stimulate domestic shipbuilding while raising concerns about disruptions in global trade amidst ongoing tariff policies.

The United States has unveiled a plan to impose port fees on ships registered in China as part of an effort to revive the declining shipbuilding industry within its borders and mitigate China's growing dominance in the sector. This announcement by the U.S. Trade Representative (USTR) is seen as a more measured approach compared to a previous proposal in February, which suggested fees as high as $1.5 million for each American port visited by Chinese vessels.

The new fees will take effect in 180 days and are expected to escalate quarterly over the following three years. The USTR expressed concerns about China's accomplishment of its market dominance, which it claims puts U.S. companies and workers at a significant disadvantage.

Under the new regulations, the fees imposed on Chinese ship owners will depend on the cargo weight, with bulk vessels charged $50 per ton, increasing by $30 per ton each subsequent year. Container ships will face fees starting at $18 per ton or $120 per container, which will also rise over time. Meanwhile, vehicles shipped in from China will incur a charge of $150 each.

The fees will apply once per voyage and will be limited to six instances annually, allowing for some exemptions. Notably, empty vessels arriving to load U.S. bulk exports will not incur charges, an adjustment that aims to minimize disruptions to export operations.

Furthermore, a second phase of the initiative aims to favor U.S.-built ships for transporting liquified natural gas (LNG), with more stringent measures to be introduced over the next two decades.

As the U.S. moves forward with these tariffs, experts warn that disruptions in global trade may intensify. Ships that previously intended to dock in U.S. ports are increasingly being redirected to European destinations instead. During the first quarter of 2025, Chinese imports to the UK surged by approximately 15%, while the EU experienced a 12% increase, highlighting the ripple effects of U.S. tariff policies.

The impact of the tariffs and related port congestion has created notable delays, particularly in the UK, but also in key European ports like Rotterdam and Barcelona. This congestion has led to considerable challenges for logistics and shipping industries, prompting shippers to divert goods to alternative markets, potentially exacerbating the situation.

Experts speculate that as U.S. tariffs force consumers to bear increased costs, the broader implications of trade redirection could bring about permanent shifts in supply chains across the globe.