- Beijing Moves to Counter US Section 301 Measures on Shipping Sector.
- China Approves Special Port Dues on American Ships to Defend Trade Interests.
- New Port Fees Deepen Maritime Tensions Between China and the US.
China is set to implement special port fees for ships owned, operated, or built by US interests, effective October 14, as announced by the Ministry of Transport. This decision comes in the wake of new US trade restrictions aimed at China’s maritime, logistics, and shipbuilding industries, reports S&P Global.
Beijing Points to Treaty Breaches and Economic Impact
This move follows the US Trade Representative (USTR) unveiling new Section 301 measures against China’s shipping sector on April 17, which include port service fees for Chinese-owned, flagged, and built vessels docking at US ports. China has accused the US of breaching international trade norms and the China-US Maritime Shipping Agreement, claiming these actions inflict serious damage on their trade relationship. With the green light from the State Council, Chinese maritime authorities will now start collecting special port fees from US-linked ships entering their ports.
Details and Structure of the New Port Fees
The new fees will target:
- Ships owned or operated by US companies, organisations, or individuals
- Ships with 25% or more equity held by US entities
- Ships flying the US flag
- Ships constructed in the US
The fee will be rolled out in four phases:
- Oct. 14, 2025 – Yuan 400 ($56.16) per net ton
- Apr. 17, 2026 – Yuan 640 per net ton
- Apr. 17, 2027 – Yuan 880 per net ton
- Apr. 17, 2028 – Yuan 1,120 per net ton
For context, the USTR plans to impose additional fees ranging from $18 to $50 per net ton on Chinese vessels starting October 14. The Chinese fees will only be collected at the first Chinese port of call for each voyage and will be capped at five voyages per ship each year. More details on the implementation will be shared later by the Ministry of Transport.
Sudden Implementation Raises Industry Concerns
Analysts noted the contrast in preparation time between Washington and Beijing. “The Chinese side had all the time to get prepared,” said S&P Global Commodity Insights tanker analyst Fotios Katsoulas. “But the US side won’t.”
While the US gave nearly six months’ notice before implementing its fees, Beijing’s short timeline has left shipping firms scrambling.
Impact on US-Owned and Internationally Listed Shipping Firms
Typically, ships built in the US are flagged domestically and operate under the Jones Act. Interestingly, there are fewer than 100 US-flagged ships that engage in international trade, as noted by the International Chamber of Shipping. However, China’s policy extends to vessels with 25% or more US ownership. This means that publicly listed shipping companies, particularly those on the NYSE and Nasdaq, could face challenges if US investors hold substantial shares.
“Container trade activity is likely to feel the initial and most visible impact,” said Maria Bertzeletou, market analyst at Signal Group. “That said, other vessel segments could also be affected over time.” She added that the final quarter of the year will be key in determining how these measures influence global freight and trading activity.
Sectors Most Likely to Be Affected
One of the first areas to feel the pinch could be Liquefied Petroleum Gas (LPG) shipments. In 2024, China imported 587,000 barrels per day (b/d) of LPG, but that number plummeted to 250,000 b/d by September, according to S&P Global Commodities at Sea. Crude oil imports have already taken a hit due to earlier 25% retaliatory tariffs on US crude, which are separate from the new port fees. On October 9, Platts, a part of S&P Global Commodity Insights, reported that the cost of transporting a 270,000 metric ton crude cargo from the US Gulf Coast to China was $37.96 per metric ton, compared to a five-year average of $26.97 per metric ton.
Industry experts warn the new fees could raise operating costs and disrupt established trade routes. “This escalation adds uncertainty to global shipping routes and may prompt carriers to reassess their port call strategies,” one market analyst said.
Broader Strategic and Political Context
A Singapore-based analyst noted the timing of the move, suggesting it could be a negotiation tactic: “It was also part of China’s move to add bargaining chips for the negotiations when Chinese President Xi Jinping meets US President Donald Trump later this month.”
Market participants are closely watching for additional guidance from Chinese authorities and any ripple effects on freight rates and supply chains. “If both parties recognise the mutual losses from this escalation, we may see a partial retreat or easing of tensions,” said Bertzeletou.
Legal and Policy Backdrop
On October 1, the Ministry of Transport made some significant changes to a key maritime law, laying the groundwork for countermeasures against what it deems unfair treatment of Chinese ships or violations of treaties by foreign governments. Additionally, on October 9, the Ministry of Commerce introduced new export controls on rare earth elements and superhard materials used in high-tech manufacturing, along with restrictions on lithium battery components, all in response to Washington’s recent limits on semiconductor exports.
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Source: S&P Global
