Surprise move by China carriers ahead of U.S. port fees
Source
American Shipper
Post Date
10/17/2025
Weak demand sees trans-Pacific container rates fall by double-digits.
Key Takeaways: It took China a generation to asc to the top of the global maritime sector; it won? take nearly that long for that country to brush off expensive U.S. port fees on its ships. Cosco, China? flag carrier and the world? fifth-largest container line, and subsidiary Orient Overseas Container Line (OOCL) of Hong Kong said that they won? levy surges to offset the fees on Chinese-built and operated ships calling U.S. ports to be implemented Oct. 14. While other liner operators scramble to fall calls and shift some of their China tonnage, Cosco advised customers in the U.S. that it plans no changes to services ahead of the punitive fees formulated under the authority of the United States Trade Representative. ?t seems unlikely shippers will experience much of an impact once the new law takes effect,?said Judah Levine of analyst Freightos, in a note to clients. The fees, which escalate in the coming years, could cost Cosco and OOCL as much as $2.1 billion in 2026, analysts say, but could be absorbed by subsidies from Beijing. The ship tax, which aims to blunt China? maritime dominance and boost American shipping and shipbuilding, ges China-owned or operated ships $80 per net tonnage for each voyage to the U.S. Non-Chinese operators will be ged the greater of $23 per net ton or $154 per twenty-foot equivalent unit (TEU) capacity. The fees apply up to five times annually per vessel; roll-on/roll-off (ro-ro) vehicle carriers will pay a rate of $14 per net ton. The fees increase by $5 per ton annually until April 2028. The fees must be paid in advance of arrival via the Treasury Department? Pay.gov platform, and vessels must show proof of payment or risk denial of entry or cargo operations at U.S. ports. Beijing for its part in late September passed new maritime laws that allow it to levy its own retaliatory port fees, and bar access to ports and data for vessels from countries that discriminate against China. ?merican lines such as Matson, and U.S.-flagged vessels make up a modest share of trans-Pacific volumes,?said Levine, ?o this kind of response may not have an outsized impact, but does represent an escalation as the deadline approaches.? Trans-Pacific spot container rates continued to fall following the Chinese Golden Week holiday. ?hat rates are falling to this degree while Red Sea diversions are still in place suggests that capacity growth is a big factor in lower rates across the industry,?said Levine, ?ith the eventual of the war in Gaza primed to release even more capacity back into the market.?
Ocean container lines introduced approximately 1.18 million TEUs of new container shipping capacity in the first half of 2025, according to analyst Xeneta, up 3.8% from a year ago. Whether general rate increases planned by carriers for mid-October hold could dep on capacity adjustments through blankings and service suspensions. October shows 67 sailings cancelled from China to the U.S. and 71 on the westbound trade, according to project44, higher than early-Covid levels.
