Uncertainty Remains As USTR Port Fee Introduction Looms
Starting October 14th, the US Trade Representative’s (USTR) Section 301 tariffs on Chinese-built vessels will come into force, though uncertainty remains around whether the costs will be distributed across global shipping.
The new rules introduce two types of penalties:
Chinese carriers registered in mainland China or Hong Kong (but not Taiwan) will be charged $50 per net ton for every vessel calling at a US port.
Ships constructed in China will instead be subject to a $120 per teu levy. If a Chinese carrier deploys a China-built ship, it will only pay the higher of the two charges, not both.
With implementation looming, the big question is whether carriers will pass these costs onto customers through surcharges and some have already signaled their approach.
The Gemini Cooperation seems to have ruled out any surcharge. Hapag-Lloyd, operating alongside Maersk, noted that the majority of its fleet was built in South Korea, effectively shielding the alliance from impact.
The Premier Alliance has been rerouting services to ensure Chinese-built ships avoid US ports, meaning HMM, ONE, and Yang Ming seem unlikely to impose extra charges -though confirmation of that is pending.
Within the Ocean Alliance, CMA CGM has also confirmed it will not apply a surcharge at this time. But its partners Cosco and OOCL face greater exposure as Chinese-owned operators, regardless of where their fleets were constructed.
Analysts estimate they could shoulder an additional $2.1 billion in costs in 2025, with no clear signal yet on whether they will attempt to recover costs. Meanwhile, MSC – the world’s largest container line – has not disclosed its position, adding another layer of uncertainty.
For now, it appears that several carriers are taking steps to absorb or sidestep implementing surcharges, suggesting the overall disruption may be less severe than initially feared when the measures were announced in April. Killick Martin will continue monitoring the situation closely.
