The U.S. government is evaluating the introduction of significant port fees on vessels linked to foreign shipbuilding markets, with charges ranging from $500,000 to $1.5 million per port call. These measures follow an investigation into global shipbuilding practices and their alignment with U.S. trade policies. The proposed fees could have far-reaching legal, economic, and geopolitical consequences.
Regulatory Background
The U.S. Trade Representative (USTR) launched an investigation in 2024 into foreign shipbuilding and maritime logistics practices. By early 2025, the USTR determined that certain practices were unfair under Section 301 of the Trade Act of 1974, granting the President authority to impose trade-related restrictions.
The current proposals include:
- $1.5 million per entry fee for vessels built in certain foreign shipyards.
- $1 million per entry fee for vessels owned by operators with specific foreign affiliations.
- Phased increases in U.S.-flag shipping requirements, requiring a percentage of U.S. exports to be transported on U.S.-built and U.S.-flagged vessels over the next seven years.
Legal challenges are expected, with industry groups arguing that these fees may violate international trade agreements and procedural standards.
Potential Charterparty Disputes
The proposed fees will likely lead to disputes between shipowners and charterers over cost allocation and operational risks. Key concerns include:
Cost Allocation:
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In time charters, charterers typically pay port costs, but the extraordinary nature of these fees could lead to disputes over responsibility.
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In voyage charters, freight rates negotiated before the fees were announced may not account for these added costs.
Delays & Off-Hire Claims:
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Compliance checks and fee processing could delay port operations, potentially leading to off-hire disputes between charterers and shipowners.
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Owners may argue that government-imposed restrictions are beyond their control, while charterers may contest such claims.
Deviation Risks:
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Some shipowners might seek to avoid U.S. ports, leading to potential claims of deviation or breach of employment obligations.
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Charterers may insist on adherence to original voyage plans or request alternative arrangements.
Fleet Classification Challenges:
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The definition of a “foreign-linked fleet” remains unclear, creating uncertainty about which vessels may be subject to the fees.
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Some operators may restructure fleets to separate affected vessels from unaffected ones.
Market Disruptions: Impact on Freight and Hire Rates
These regulatory measures could significantly affect freight markets:
Higher Freight Rates:
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Shipowners may pass on additional port fees to charterers, increasing freight costs.
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Sectors such as container shipping, dry bulk commodities, and energy trades could see rising costs.
Asset Value Implications:
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Non-affected vessels may see increased demand and higher hire rates.
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Affected vessels could experience lower market value and declining hire rates, especially for U.S.-bound voyages.
Trade Flow Adjustments:
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Cargo interests may reroute shipments to avoid U.S. restrictions, opting for ports in Canada, Mexico, or Caribbean transshipment hubs.
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Affected shipowners might shift new orders to alternative shipbuilding markets to mitigate future risks.
Geopolitical Considerations & Industry Response
The introduction of these fees could provoke retaliatory measures from affected countries, such as:
- Additional port fees on U.S.-linked vessels.
- Restrictions on U.S. exports, particularly in energy and raw materials.
- Diplomatic pressure to challenge the regulations in global trade forums.
Shipowners, charterers, and stakeholders must assess potential exposure and review charterparty agreements to determine cost liabilities. Fleet restructuring, alternative routing, and legal challenges are likely as the industry navigates this evolving landscape.
Conclusion: Navigating an Uncertain Future
The proposed U.S. port fees introduce a new layer of complexity for global shipping. The legal, economic, and trade ramifications could reshape the maritime industry, prompting:
- Increased legal disputes over cost-sharing and compliance delays.
- Market volatility, with shifts in freight rates and asset values.
- Potential geopolitical tensions affecting trade flows.
As regulatory details continue to emerge, stakeholders must remain proactive, adaptable, and legally prepared to navigate the rapidly evolving shipping environment.
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Source: The Swedish Club
