- Trump’s Port Fee Policy to Hit Global Carriers With $3.2 Billion Cost.
- Shipping Industry on Edge as U.S. Targets Chinese-Built Ships.
- New U.S. Port Fees Aim to Curb China’s Maritime Dominance.
The United States is just a week away from rolling out new port fees for vessels linked to China, a decision that could cost the world’s top 10 shipping companies around $3.2 billion next year. The Trump administration claims this policy aims to tackle China’s increasing maritime influence and boost U.S. shipbuilding efforts, reports Reuters.
Industry Braces for Uncertainty Ahead of October 14 Deadline
“While some observers believe the October 14 deadline may be extended, or even scrapped, as part of broader negotiations, the uncertainty has already unsettled carriers, adding another layer of geopolitical risk to fleet deployment strategies,” S&P said in a report this week.
Fee Details and Compliance Requirements
According to the U.S. Trade Representative (USTR), ship operators, not customs authorities, are responsible for determining whether the new fees apply. “The burden for determining if a vessel owes the fee is on the operator, NOT CBP,” USTR said. All payments must be made through the Department of the Treasury’s Pay.gov website, not at the port of entry.
- All payments need to be processed through the Department of the Treasury’s Pay.gov website, not at the port itself.
- For Chinese-owned or operated vessels, there’s a flat fee of $80 per net tonnage for each voyage to the U.S.
- Non-Chinese operators of ships built in China will face a charge of either $23 per net tonnage or $154 per 20-foot equivalent unit (TEU) capacity, whichever is higher.
- Both fees can be applied to a ship up to five times a year, according to maritime data provider Alphaliner.
Adjustments After Industry Pushback
After significant lobbying from the industry, the USTR has lowered the initial fee amounts, provided exemptions for several U.S.-based operators, and postponed the timeline for liquefied natural gas (LNG) carriers. However, they also broadened the fees to include non-U.S.-built roll-on/roll-off (Ro-Ro) auto carriers, except those flying the U.S. flag.
COSCO Faces the Largest Exposure
According to Alphaliner, Chinese carrier COSCO, along with its OOCL fleet, is expected to bear the brunt of these new fees, potentially facing costs of up to $1.53 billion next year—almost half of the total projected for the top 10 cargo carriers.
Other major players, like France’s CMA CGM, have already started moving Chinese-built vessels off U.S. routes to lessen the financial blow.
China’s Response and Upcoming Diplomatic Talks
In a firm response, Beijing has vowed to implement retaliatory measures. Premier Li Qiang has signed a decree that promises counteractions against any discriminatory practices aimed at Chinese ships or crews. At the same time, President Trump and Chinese President Xi Jinping are set to meet at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea, which will take place from late October to November 1. This topic is expected to be a significant point of discussion.
U.S. Shipbuilding Lagging Behind China
Even with the new initiative, U.S. shipyards are still lagging significantly behind China in terms of production. Last year, American shipyards managed to build fewer than 10 commercial vessels, while their Chinese counterparts, many of which manufacture both commercial and military ships, produced over 1,000.
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Source: Reuters
