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The U.S. Trade Representative (USTR) has recently proposed new port fees targeting Chinese shipping lines and Chines-built ships. The fees are part of a broader USTR initiative aimed at supporting American shipbuilding and addressing China's influence in the maritime, logistics, and shipbuilding sectors.

This USTR plan includes a 180-day grace period during which no fees will be charged. Afterwards, it will implement fees on Chinese vessel owners and operators based on net tonnage of vessel capacity per U.S. voyage. The fee basis will be $50 per net ton, increasing annually over 3 years to $140 per net ton in 2028. The fee will be assessed on the first point of entry per rotation/string and is capped at five assessed fees per year. The fees will also be applicable on a “non-discriminatory basis,” meaning fees will also apply to operators using Chinese-built vessels, regardless of the operator’s nationality, at a lower rate. Some exemptions will apply to U.S.-owned vessels, vessels enrolled in U.S. Maritime Administration programs, smaller vessels, ships in ballast, short sea shipping trades, and certain specialised export vessels. The plan also offers operators a temporary suspension of service fees for up to three years if they commit to purchasing U.S.-built vessels of equivalent or greater size.

A key concern surrounding the USTR fees is their potential impact on container shipping alliances. As carriers may need to adjust their strategies to mitigate the financial effects of the fees, there is a possibility of disruptions within these alliances, leading to. changes in ship deployments and potential challenges for global supply chains, overall increasing costs for users of shipping lines. Drewry, reported by the Loadstar notes that these ports fees will mean a “forced concentration” of non-Chinese carriers onto US services that will reduce options for shippers, and could see Chinese carriers effectively priced out of US trades, ultimately triggering antitrust competition issues. According to Drewry, if Chinese carriers were to pass on the full cost of the USTR fees, shippers would be charged more than $511 per 40ft from October – equivalent to 19% of the current World Container Index rate. And by April 2028, “that cost will surge” to around $1,400 per 40ft, or just over half the WCI rate today.

Source: The Loadstar, Seatrade Maritime News