U.S. plans to impose high port charges on Chinese ships and operators

The U.S. government recently announced a new charging proposal for Chinese ships and their operators, which is regarded as a major retaliatory measure against China. According to proposals published in the Federal Register Friday by the Office of the United States Trade Representative (USTR), for Chinese-built ships calling U.S. ports, a fee of up to $1.5 million per visit would be charged; For shipping companies that own or order even one Chinese-built ship, they have to pay a fee of $500,000. Furthermore, for Headquarters's Chinese-based shipping companies, such as Cosco Shipping, the world's fourth-largest Container carrier, each ship will face an additional fee of $1 million per call at a U.S. port.

The proposal follows an investigation completed by USTR in January this year, which claimed that China dominated the global ocean transportation and shipbuilding market through unfair trade. The new policy not only includes the aforementioned high fees, but also proposes a series of new priority rules that require U.S. EXP cargo to be delivered on U.S.-flagged vessels with U.S. crews. This series of initiatives is expected to have a huge impact on the maritime supply chain serving the world's largest market, with complex service routes, berth arrangements, and cooperation networks such as ship-sharing agreements among the major ocean carriers involved. It is foreseeable that these new costs are likely to be passed on to cargo owners in the form of surcharge or higher freight rates, eventually leading to higher prices of imported goods.

According to analyst Linerlytica, about 17% of container ships calling U.S. ports are currently made in China, which is equivalent to 1.29 million TEUs of total U.S. imports of 28.2 million TEUs in 2024. Therefore, if the proposal is implemented, the scope of its implications should not be underestimated.

Once this proposal is implemented, it will not only directly affect the economic and trade exchanges between China and the United States, but also prompt other Country to reassess their trade relations with China. It is worth noting that the decision on whether to finally implement these fees lies with US President Trump. The public comment period will run until March 24, and public hearings are planned to hear from all parties during this time.