The administration under President Donald Trump unveiled a proposal to increase fees on Chinese-made shipping vessels that dock at U.S. ports, a move that could potentially elevate costs for American businesses and consumers. On Friday, the Office of the U.S. Trade Representative (USTR) introduced this proposal, which would implement fees up to $1.5 million per visit for ships built in China, regardless of the operator’s nationality.
The fee structure is tiered based on the proportion of Chinese-built ships in a company’s fleet. Firms with 50% or more Chinese-built ships would incur a $1 million fee per port call, while those with fleets ranging from 26% to 49% would face a $750,000 fee per visit, and those with 0% to 25% would be charged $500,000 per call. Additional charges up to $1 million would be levied on ships owned by Chinese companies like Cosco, capping any single visit charge at $1.5 million.
The initiative also mandates a rising percentage of U.S. exports over seven years to be transported on U.S.-flagged vessels, operated by U.S. companies, and incrementally, on U.S.-built ships—from 3% to 5% between the third and seventh year. Lars Jensen, CEO of Vespucci Maritime, expressed concerns in a Wall Street Journal report, stating that these fees could escalate costs for companies importing or exporting from the U.S., impacting prices for consumers.
Lloyd’s List suggested that ship operators might try to sidestep these costs by separating their Chinese-built ships into distinct operating entities, complicating logistics. Each visit would amplify expenses as container lines often make multiple U.S. port calls per trip. Increased fees would likely be absorbed by U.S. importers and exporters through elevated charges or freight rates.
The USTR concluded that China’s pursuit of dominance in the maritime shipping industry poses economic and security threats to the U.S. maritime sector by displacing foreign firms and creating dependencies. Currently, this proposal is open for public commentary, and the USTR will hold a hearing on March 24 to decide on finalizing the fee structure.