The office of the US Trade Representative (USTR) published an action notice last week to implement significant fees on Chinese owned or built cargo ships arriving at US ports.
The charges are due to be introduced this year on October 14th, and will rise incrementally until they plateau in 2028.
The USTR has stated “The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.”
Our understanding is that fees will be charged to the carrier or ship owner and will be based on a price per net tonnage of the products unloaded or loaded at each US port.
This will impact container traffic as follows:
Index I – Ships owned by China or Chinese Businesses (including Hong Kong and Macau)
From October 2025: $50.00 per net tonne will apply.
From April 2028: $140.00 per net tonne will apply.
Index II – Ships built in China (including Hong Kong and Macau)
From October 2025: $18.00 per net tonne will apply, minimum $120.00 per container, which will rise incrementally.
From April 2028: $33.00 per net tonne will apply, minimum $250.00 per container.
Foreign built car carriers (not just Chinese built) are also being targeted.
Index III – Foreign Built Car Carriers
From October 2025: A fee of $150 per Car Equivalent Unit (CEU) will be applied.
Chinese built ships currently account for around 20% of cargo ships regularly calling at the US – which equates to over 200 vessels. Chinese shipyards have also secured around 50% of new build container ship orders in the past couple of years.
The announcement to introduce these fees was met with widespread disapproval. Not just from China, but from governments, carriers, businesses, trade bodies and supply chain stakeholders worldwide.
If or when the fees are introduced, we could witness some significant changes for ocean freight carrier alliances. The team at Killick Martin are monitoring developments.
