- The measures aim to counter China’s dominance in global shipbuilding and logistics infrastructure, as Chinese-built vessels make up a substantial share of global and U.S.-linked fleets.
- Chinese-built vessels account for 23% of the global oil tanker fleet, 48% of dry bulk tonnage, and 28% of container ship tonnage; over two-thirds of new ship orders in each segment are under construction in China.
- U.S. energy, agriculture, and shipping sectors have pushed back, warning of higher costs and trade disruptions; nearly 600 public comments were submitted, mostly in opposition.
- S&P Global estimates the new fees could increase freight rates by 9% on the Asia–U.S. Atlantic route, 6.2% on the Asia–U.S. West Coast, and 10.5% on the U.S.–Europe route.
The United States Trade Representative has introduced new port fees on foreign vessels and marine equipment, primarily targeting Chinese shipping. Announced in response to a yearlong Section 301 investigation, these measures are designed to strengthen U.S. shipbuilding capabilities and challenge China’s dominance in the global maritime industry, potentially reshaping trade flows and freight market dynamics amid ongoing tensions between the two economic powers.
Industry Pushback and Potential Trade Disruptions
Analysts at S&P Global Commodity Insights have described the USTR’s proposed port fees as both significant and symbolic, signaling that China’s growing maritime influence is finally under U.S. scrutiny. If implemented, the fees could severely disrupt global trade, with particularly strong impacts on U.S. export-import (EXIM) activities. The proposal has sparked opposition from U.S. energy and agricultural producers, among others, who argue the fees would increase import and export costs for American businesses and negatively affect the economy.
Originally introduced in February, the proposal was significantly scaled back last month following approximately 600 public comments—most of them critical. Despite these revisions, the fees are set to take effect on October 14, with the USTR indicating that further changes are unlikely, except for those concerning Chinese-made cargo-handling equipment.
Breakdown of USTR Port Fees and Exemptions
Under the new USTR proposal, a phased fee structure will be implemented starting October 14, 2025, targeting various categories of foreign maritime vessels. Chinese-owned or operated ships of all types will face a fee of $50 per net ton starting October 2025, rising incrementally each year to reach $140 per net ton by April 2028. Chinese-built tankers and dry bulk carriers will incur fees beginning at $18 per net ton in 2025, increasing annually to $33 per net ton by 2028. For Chinese-built containerships, charges start at $120 per container and will rise to $250 per container over the same period. Foreign-built car carriers will face a flat fee of $150 per Car Equivalent Unit (CEU) from October 2025.
Additionally, from April 2028, U.S. liquefied natural gas (LNG) exports will be required to use U.S.-flagged ships, starting with 1% of exports and gradually increasing by 1% annually to reach 15% by 2047. Certain exemptions apply, including U.S.-owned or U.S.-flagged ships, empty vessels, ships under 4,000 TEU or 55,000 dwt, bulk carriers under 80,000 dwt, ships arriving from less than 2,000 nautical miles away, chemical tankers, and laker vessels.
Market Impact Across Shipping Segments
Wet Bulk
The USTR port fees are expected to raise freight costs for U.S. crude and fuel oil imports from key regions such as Brazil, Argentina, West Africa, the Middle East, and Asia, particularly on Aframax, Suezmax, and VLCC vessels. As of May 21, Platts assessed VLCC rates on the Arab Gulf–U.S. Gulf Coast route at $13.09/mt and Suezmax rates on the West Africa–U.S.Gulf Coast route at $17.98/mt.
For clean product shipments, Scorpio Tankers noted limited exposure, with only 7% of U.S. exports and 9% of imports on LRs affected. Platts assessed the LR1 rate from the Persian Gulf to the U.S. Atlantic Coast at $66.36/mt and LR2 at $59.33/mt. In 2024, 22% of U.S. crude and refined product shipments used Chinese-built tankers. U.S. LPG exports totaled nearly 66 million mt, with 7.2 million mt carried by Chinese-owned or operated ships. The global oil tanker fleet includes over 7,400 ships, 23% of which were Chinese-built, and 70% of the tanker order book is under construction in China.
Dry Bulk
The proposed fees will apply to Kamsarmax and Capesize vessels bringing commodities such as steel and cement to U.S. ports. On May 21, Platts assessed Capesize T4 rates at $14,336/day and KMAX 9 rates at $11,582/day for non-scrubber ships. Despite the measures, the overall market impact is expected to be limited since the U.S. represents only 2% of global dry bulk imports, with 90% carried on vessels under 80,000 dwt.
In 2024, the U.S. exported 300 million mt of dry bulk cargo, 46% of it on Chinese-built ships. These vessels transported 45% of agricultural exports, 52% of coal, and 42% of minor bulk. The global dry bulk fleet included 12,700 ships as of March, with Chinese-built vessels making up 48% of gross tonnage. Of the 1,142 dry bulk ships on order, 70% are being built in China.
Container
Container carriers widely oppose the USTR proposal, which affects major global trade routes to and from the U.S., excluding shortsea services. According to S&P Global, even non-Chinese lines could see freight rates rise by 9% on the Asia–U.S. Atlantic Coast route, 6.2% on the Asia–U.S. West Coast, and 10.5% between the U.S. and Europe. On May 20, Platts assessed rates at $5,000/FEU for North Asia–East Coast, $3,800/FEU for North Asia–West Coast, and $1,700/FEU for North Continent–East Coast routes.
As of March, 278 out of 988 containerships serving U.S. trade lanes were Chinese-built, representing 1.45 million TEU. In 2024, Chinese-built equipment accounted for 32.2% of U.S. imports of cranes, containers, and chassis. The global container fleet included over 6,400 ships, 28% of gross tonnage from Chinese yards. Of nearly 700 ships on order, 68% are being built in China.
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Source: S&PGlobal
