Trade Route Adjustments and Supply Chain Issues Plague Tank Containers Post-Tariffs

25

The introduction of “reciprocal tariffs” by the Trump administration in April 2025 has had a significant and far-reaching impact on international trade and transport, with the tank container sector experiencing particularly acute effects, reports International Tank Container Organization.

Notable Impact

The recently implemented higher import tariffs are having a notable impact on the tank container shipping sector in several key ways:

  • Trade Volumes Drop: The increased cost of imported goods due to the tariffs is leading to reduced demand, particularly for chemicals and petroleum products, which constitute the majority of cargoes transported in tank containers.
  • Rising Costs for Operators: Shipping companies are facing higher operational expenses as a result of the tariffs. These increased costs are translating into elevated freight rates, which could diminish their competitiveness in the international market.
  • Route and Logistics Adjustments: To circumvent the imposed tariffs, carriers are resorting to rerouting their shipments through alternative ports or even different countries. While this might offer a temporary solution to avoid the tariffs, it introduces complexities such as delays and added difficulties in supply chain planning.

Fee Finalized

On April 17th, the United States Trade Representative (USTR) finalized its action following an investigation into China’s shipbuilding and logistics sector. According to the USTR’s draft Federal Register notice, the USA will begin imposing fees on Chinese-owned, operated, and built vessels arriving at U.S. ports starting in October 2025.

These measures are the result of a year-long Section 301 investigation that involved a public hearing, nearly 600 public comments, and consultations with government experts and USTR advisors. While the final fees are lower than the initial proposals from February 2025, they remain significant and will be implemented in two phases.

Effective October 14, 2025, fees will be levied on vessels with Chinese operators or owners. These fees will be calculated based on the net tonnage of the arriving vessel and will increase incrementally over three years, starting at USD50 per net ton and rising to USD140 per net ton. These fees will be collected at the first U.S. port of call for affected vessels on a particular shipping route.

For China-built ships, fees will also be based on either net tonnage or the number of containers, with incremental increases over the subsequent three years. The fees will start at USD18 per net ton and increase to USD33 per net ton. Alternatively, fees will be charged based on discharged containers, starting at USD120 per container and increasing to USD250 per container. The higher of the two calculated fees (based on net tonnage or containers) will be due.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: ITCO