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The U.S. Trade Representative’s newly unveiled port fees are a bold escalation

The U.S. Trade Representative’s newly unveiled port fees are a bold escalation in America’s economic tug-of-war with China — but they also carry ripple effects for the global shipping industry and U.S. exporters. While the headline is the imposition of fees on Chinese-built and operated ships, USTR’s initiative under the Trump administration goes further, including foreign-built car carriers and laying the groundwork for LNG vessel restrictions. It's an ambitious attempt to revitalize the U.S. shipbuilding sector and shift strategic leverage in maritime logistics — but the impact may not be as targeted or painless as officials suggest.

The core of the policy rests on levying port fees on Chinese-connected shipping. Chinese-owned and -operated vessels will be charged $50 per net ton starting October 2025, escalating annually to $140 by 2028. For Chinese-built vessels, regardless of ownership, a gentler fee structure begins at $18 per net ton, rising to $33. Alternatively, per-container charges are also an option, climbing from $120 to $250. The policy avoids punishing entire fleets with Chinese-built ships, opting instead to charge per vessel — a nod to industry feedback and a subtle retreat from an earlier, more aggressive draft.

While framed as a tool to correct China’s “unreasonable” trade practices and over-dominance in shipbuilding, these port fees are clearly a strategic trade policy move. The USTR’s 42-page directive argues the need to reduce reliance on Chinese manufacturing for vessels, cranes, and other maritime infrastructure — all while sending a strong “demand signal” for American-built ships. This narrative aligns with broader efforts under both Trump and Biden to shore up U.S. industrial capacity and national security.

However, as with any blunt policy instrument, the implications are complex. USTR’s office introduced several exemptions for Chinese-built vessels not operated or owned by Chinese to temper backlash: vessels below 55,000 DWT for tankers/general cargo, below 80,000 DWT for bulkers, those arriving in ballast (empty), ships on short-sea routes under 2,000 nautical miles, specialized or special purpose-built vessels for the transport of chemical substances in bulk liquid forms, vessels principally identified as “Lakers Vessels” on CBP Form 1300, or its electronic equivalent and U.S.-owned vessels (at least 75% beneficially owned by U.S. persons) registered in subsidy programs. Notably, operators can avoid fees for three years by ordering U.S.-built ships, an incentive designed to spur domestic shipyard orders. Based on the data from U.S. ports, it appears that the new USTR proposal would impact only a small fraction of vessels — less than 10% of dry bulk and 5% of tanker calls. While the announcement is thorough, its vague language creates uncertainty, making it difficult to assess the full scope and implementation of the proposed fees.

If these proposals are implemented, they could gradually influence the structure of global shipping trade. Chinese-owned vessels may face increased costs on U.S. routes, potentially creating a competitive edge for non-Chinese ships. This could lead to the emergence of varied ownership arrangements, such as joint ventures or intermediary structures, as companies explore compliance strategies.

Sale and Purchase

Dry:

On the Kamsarmax sector, the “Sea Pluto” - 81K/2013 New Times was sold for USD 16.5 mills and the “Seaduty” - 82K/2008 Tsuneishi found new owners for USD 14 mills. On the Ultramax sector, the “Vantage Lady”- 63K/2015 Jiangsu New Hantong was sold for USD 20 mills basis TC attached at USD 10,350/day till end 2026. Moreover, on the same sector, Far Eastern buyers acquired the “El Comino”: - 61K/2012 Iwagi for low/mid USD 19 mills. The Supramax “Tamarack” - 50K/2003 Kawasaki found new owners for excess USD 8 mills. Finally, on the Handysize sector, the Boxed “Nord Abidjan” - 38K/2020 Minaminippon was sold for region USD 25.5/ 26 mills.

Wet:

Chinese buyers acquired the VLCC “DHT Lotus” - 320K/2011 Bohai and the “DHT Peony”- 320K/2011 Bohai for USD 103 mills enbloc. The dirty trading LR2 “Mare Nostrum” - 110K/2009 Mitsui was sold for excess USD 34 mills, has been delivered. On the MR2 sector, the “PS Atene” - 50K/2018 HMD found new owners for USD 37.8 mills. On the same sector, the “MD Miranda” - 46K/1999 Daedong changed hands for USD 8.3 mills. Finally, the Shallow draft, Twin M/E MR1 “Golden Daisy” - 35K/2021 Fujian Mawei was sold for USD 32.93 mills to clients of Seakapital.

Xclusiv Shipbrokers Inc.