Potential New Port Fees for Chinese Shipping Companies

We want to update you on a recent proposal from the United States Trade Representative (USTR) that has the potential to significantly impact global trade dynamics. This proposal involves the introduction of new port fees specifically targeting Chinese shipping vessels.

Understanding the implications of this proposal is crucial, as it could lead to changes in shipping costs, influence trade routes, and potentially alter the new trade landscape..

• New Fees: Chinese-owned and Chinese-built ships may face fees up to $1 million per entrance to U.S. ports, or $1,000 per net ton of the vessel’s capacity. Non-Chinese operators using Chinese-built ships could face fees up to $1.5 million per port entry.
• Refunds for U.S.-Built Vessels: There may be refunds of up to $1 million per entry for U.S.-built vessels employed in international maritime services.
• U.S. Vessel Requirements: At least 1% of U.S. exports must be shipped on U.S.-flagged vessels for the first two years.
• Public Comment and Hearing: USTR is inviting public comments on the proposed actions and will hold a public hearing on March 24, 2025.

Canadian ports like Vancouver and Prince Rupert could benefit from increased U.S.-bound freight, leveraging their strong rail connections to the U.S. heartland. However, these ports are often congested and may struggle to absorb much additional capacity.

The proposal also includes U.S. cargo preference rules, requiring a growing percentage of U.S. exports to be carried on American-flagged and eventually American-built vessels. This could lead exporters to route cargo through Canadian ports to avoid potential capacity shortages.

Stay informed with our New Trade Landscape resource page and subscribe to our trade alerts to ensure you are up-to-date with the latest developments in the industry.