 NewU.S. Port Fees Targeting Chinese-Origin Vessels Effective October 14, 2025 |
Source |
American Shipper |
Post Date |
09/08/2025 |
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The U.S.Trade Representative (USTR) has finalized a new port fee structure that is setto take effect October 14, 2025, impacting Chinese-owned, Chinese-operated, andChinese-built vessels. These changes follow an April directive from the WhiteHouse and reflect efforts to reduce U.S. reliance on Chinese-controlledmaritime assets. The phased-in fees will affect ocean freight costs and mayinfluence which vessels or carriers shippers choose for U.S. bound shipments.
The fees will be assessedbased on the following priority order and are not cumulative. Only one fee mayapply per vessel rotation, deping on which condition is met first:
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?Annex 4: Applies to Liquefied Natural Gas (LNG) vessels
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?Annex 3: Applies to vehicle carriers
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?Annex 1: Applies to vessels that are owned or operated by a Chinese entity
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?Annex 2: Applies to Chinese-built vessels, but only if Annexes 1, 3, and 4 do not apply
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What?Changing
We will focus mainly onAnnexes 1 and 2, as these contain the most significant impacts.
Annex1: Chinese-Owned or Operated Vessels
Annex 1 applies to anyvessel that is owned or operated by a Chinese entity. Starting Oct 14, 2025, aport entry fee of $50 per net ton per rotation will be applied to any vesselthat is Chinese-owned or operated before the first US port call, with gesassessed per vessel rotation, not per port call. The maximum ge is cappedat 5 rotations per year for each individual vessel.
Note: Net tonnage measuresonly the cargo-carrying capacity of a vessel. It excludes parts of the shipthat don? hold cargo, like the engine room, bridge, or crew areas.
According to maritimeexpert Lars Jensen, a typical COSCO container vessel with a capacity ofapproximately 13,000 TEU has an estimated net tonnage of 65,000. At the $50 pernet ton rate, this results in a $3.25 million fee per rotation, which equatesto approximately $250 per TEU if the vessel is fully loaded.?In 2028, thatwould equal to $8.4m per rotation or $646/TEU if the vessel is fully loaded.
Howis ?f China?Defined?
The regulation, takes abroad view of what qualifies as ?f China?based on any of the followingcriteria:
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?Country of citizenship of the owner
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?Location of corporate headquarters or parent company headquarters
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?Principal place of business
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?Entity ownership or control
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?Jurisdiction to which the entity is subject
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?Place of incorporation or organization under Chinese law
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?Ownership of 25% or more voting interest by Chinese parties
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?Chinese representation on the board of directors
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?Operation by a Chinese crew
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Even if a vessel is notChinese-flagged, meeting any of these criteria could trigger the new feerequirements.
Annex2: Vessels Built in China
Effective October 14, 2025:the higher of $18/net ton or $120/container per rotation (not per port call)paid before the first US port call, capped at a maximum ge of 5 rotationsper year.
To illustrate, a genericvessel of approximately 13,000 TEU capacity and 60,000net tons, the fee would be calculated as follows: Based on net tonnage:60,000 ?$18 = $1.08 million per rotation; based on containercount: 13,000 ?$120 = $1.56 million per rotation. The $1.560mfee will apply. In 2028, applying the container-based fee would result in age of approximately $3.25 million per rotation for avessel of this size or $250 per TEU.
Exemptionsand Special Considerations on US ship orders
Carriers may qualify foran exemption if they have an equivalent U.S.-built vessel on order and takedelivery within three years.
However, given currentU.S. shipyard capacity constraints, especially since most of the key componentsof the vessel must also be US-made, achieving this exemption may be difficult.(This applies to both Annex 1 & 2)
Annex3: Vehicle Carriers (RoRo Vessels)
This annex applies toRoll-on/Roll-off (RoRo) vessels, which are specifically designed to transportwheeled cargo such as cars, trucks, and trailers. These vessels featurebuilt-in ramps that allow vehicles to roll on and off the ship efficiently atports. If a RoRo vessel falls under the ownership or operational criteriadefined in the regulation, it will be subject to the applicable U.S. port entryfees ning October 14, 2025.
Annex4: LNG Vessels
This annex appliesspecifically to Liquefied Natural Gas (LNG) vessels, which are speciallydesigned to transport LNG at extremely low temperatures across long distances.Starting April 17, 2028, at least 1% of all LNG exports by vessel must beshipped using U.S.-built vessels.
Exemptions(Apply Across Annexes)
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?Vessels arriving empty
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?U.S. government cargo
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?U.S.-owned, U.S.-flagged, or military-use vessels
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?Vessel capacity 4,000 TEU or 55,000 deadweight tons
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?Short voyages 2,000 nautical miles, such as those departing from U.S. territories, the Caribbean, or the Great Lakes.
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Whois Affected
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?Vessels owned or operated by entities from China, Hong Kong, or Macau.
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?Chinese-built ships, regardless of current ownership.
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?Vehicle carriers that are not built in the U.S. even if U.S.- flagged or owned.
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KeyImpact to Prepare For
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?Ocean freight costs may rise, especially on Transpacific Eastbound (TPEB) routes.
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?Shippers may start choosing native carriers to avoid higher fees.
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?Long-term contracts and rate strategies should be reviewed now to account for these changes.
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?Carriers subject to the 5-rotation fee cap may seek to recover costs elsewhere. For instance, if a carrier makes 10 U.S. port rotations annually but fees are only applied to five, they may spread the cost across all sailings?otentially passing the surge to customers as part of freight rates or accessorial ges.
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As companies look toadapt, recent insights from global carriers suggest that some effects of thenew rules are already being felt across the industry.
IndustryConcerns Over U.S. Port Fees
In a new episode of the Freight Buyers?Club, Joe Kramek, President and CEOof the World Shipping Council, offers a candid, carrier-side view of the U.S.port fee policy targeting Chinese-built and Chinese-operated vessels.
He explainsthat while the policy is framed as a move to strengthen the U.S. shipbuildingindustry, it could up raising long-term costs for U.S. importers andexporters, particularly manufacturers and farmers without achieving itsinted goals.
One key issue is how the fees are calculated. Because they?e based on nettonnage (the internal volume of cargo space), carriers could face high costseven if their vessels are not fully loaded.
Kramek also points to theuncertainty d by shifting tariffs and regulations, which are forcing bothcarriers and shippers to constantly adjust with little notice. ?he zigzaggingin policy signals,?he notes, ?ncreases the risk of whiplash effect?wheresupply and demand are thrown off balance, causing reliability issues thatripple across global trade lanes.
To move forward, heemphasized the need for long-term planning. A 10-15-year U.S. maritime strategyfocused on shipyard investment, workforce development, and industrial capacitywas described as essential to building resilience.
Watch thefull interview.
CarrierResponse & Market Adjustments
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?COSCO and OOCL, both members of the Ocean Alliance, may redeploy Chinese-built vessels to non-U.S. trades, leaning on CMA CGM or Evergreen via vessel swaps.
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?Carriers may accelerate short-term contract discussions ahead of the October fee start.
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?Pricing adjustments may potentially reflect both the new fees and added administrative overhead.
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?Port fee eligibility may likely be determined using the vessel? Certificate of Registry or other documentation related to ownership and control.
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AnnexV: Proposed Tariffs on Chinese-Made Equipment
The USTR is also proposingadditional duties of 20?00% on containers, trailers, semi-trailers, chassis,chassis parts, and ship-to-shore cranes made in China. A public hearing isscheduled for May 19, 2025, after which the government will determine whetherto implement the duties in 180 days or over a phased-in period of 6 to 24months.
These proposed tariffswould be in addition to existing tariffs and could impact both ocean anddomestic transportation costs. To avoid the new duties, importers must certifythat their products were not manufactured by a company owned or controlled by a
Chinese entity?ith broaddefinitions around control and ownership.
This marks a significantescalation in trade enforcement and could signal future restrictions not juston ?ade in China?goods, but also made in some other country by a companyunder Chinese ownership or control (with a broad definition of those terms).Importers should start assessing exposure across their entire equipment supplychain.
WhatYou Can Do Now
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?Audit current routings, vessel origins, and carrier depencies.
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?Explore nate service options or alliances that may reduce tariff exposure.
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?Review existing contracts to understand pass-through clauses.
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As trade compliance becomesincreasingly complex, it? more important than ever to work with trustedexperts. To revisit the fundamentals, feel free to explore our TradeCompliance 101 eBook ?a practical guide for global shippers.
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