US lays out plans to hit Chinese ships with port fees

The United States government has recently unveiled a plan to impose port fees on ships coming from China. This initiative aims to boost the American shipbuilding industry and to counter China's growing influence in this sector. Starting in mid-October, Chinese ship owners and operators will be required to pay a fee of $50 for every ton of cargo they bring into US ports. This fee is set to increase annually over the next three years. There are concerns that these new measures could further complicate global trade, especially following the series of tariffs introduced by President Trump. However, the fees are less severe than what was initially proposed. A representative from the Chinese foreign ministry expressed that these fees would lead to higher prices for American consumers and would not effectively revitalize the US shipbuilding industry. The US Trade Representative (USTR) stated that China has largely achieved its goals of dominance in the shipbuilding sector, which has put American companies and workers at a disadvantage. The fees imposed on Chinese vessels will be determined by the weight of their cargo, the number of containers they carry, or the number of vehicles onboard. For bulk carriers, the fee will be based on the weight of the cargo, while for container ships, it will depend on the number of containers being transported. The initial fee of $50 per ton will increase by $30 each year for the next three years. Ships built in China will incur a starting fee of $18 per ton or $120 per container, which will also rise over the next three years. Non-US built ships that transport cars will be charged $150 for each vehicle. The fee will be applied once per voyage for affected ships and will not exceed five times a year. Empty vessels arriving at US ports to carry bulk exports, such as coal or grain, will be exempt from these fees. Additionally, vessels that transport goods between American ports or to Caribbean islands, as well as US and Canadian ships that dock at Great Lakes ports, will also be exempt from these regulations. The newly proposed fees are significantly lower than a plan discussed in February, which suggested charging up to $1. 5 million for each American port visited by a Chinese ship. The USTR also announced that a second phase of actions will commence in three years to favor US-built ships that transport liquefied natural gas (LNG). These restrictions will gradually increase over the next 22 years. This announcement comes at a time when global trade is already facing disruptions due to Trump's trade tariffs. According to a trade group, cargoes that were originally meant for US ports from China are now being redirected to European ports. Businesses have warned that this shift will likely lead to increased prices for American consumers. Since President Trump took office in January, he has imposed tariffs of up to 145% on imports from China. Other countries are currently facing a blanket US tariff of 10% until July. The administration indicated that when the new tariffs are combined with existing ones, the total levies on certain Chinese goods could reach as high as 245%. These tariffs have resulted in significant buildups of ships, particularly in the European Union, and have also caused congestion at UK ports. Marco Forgione, the director general of the Chartered Institute of Export & International Trade, noted that more containers are arriving in the UK. He stated, 'We have seen a lot of diversion of ships from China that were supposed to head to the US, now diverting to the UK and into the EU. ' In the first quarter of 2025, Chinese imports to the UK have surged by approximately 15%, while imports to the EU have increased by around 12%. 'That's a direct impact of what President Trump is doing,' he added, emphasizing that the uncertainty and increased disruption are driving up prices for consumers. Sanne Manders, president of the logistics firm Flexport, mentioned that both tariffs and strikes at ports in the Netherlands, Germany, and Belgium during the first three months of the year have been causing congestion at ports. He pointed out that congestion in the UK is particularly severe in Felixstowe, while Rotterdam and Barcelona in continental Europe are also experiencing significant delays. Manders believes that if more cargo is routed towards Europe, it could lead to even greater congestion as new buyers are found, although terminals will be open for longer hours during the summer due to better weather. He noted that shippers are exploring new markets, but there may also be a surge of goods heading to the US to take advantage of a 90-day window for goods from certain countries. He concluded by stating that while US consumers will bear the cost of the tariffs, European consumers are unlikely to see much impact. Companies may also begin to redesign their supply chains in response to these changes.