Trump administration unveils major port fees on Chinese cargo ships

The Trump administration has suggested imposing harsh new charges on international shipping, aiming at vessels owned by Chinese firms or built in Chinese shipyards, vowing to significantly change the dynamics of global trade, according to media sources.

The new policy would impose a fee of $1 million or more per US port visit on cargo ships owned by Chinese companies, as well as on vessels registered in other countries but built in China. Operators with fleets of 25% to 50% Chinese-built vessels would pay up to $750,000 per call, while those with 25% or fewer Chinese-made ships would incur a $500,000 fee per call, as a side note.

The investigation revealed that China’s share of global shipbuilding has surged over the past 25 years, growing from 5% of total ship tonnage in 1999 to over 50% by 2023. Conducted under Section 301 of the Trade Act of 1974, the investigations concluded that the Chinese government has been following a policy of subsidizing its domestic shipbuilding sector with the goal of "seeking dominance" in the global market.

The proposal is open for public comments until March 24, after which the administration will decide on the new fees.

Analysts suggest, since most ships are Chinese-built, port call fees will likely be passed onto US shippers and customers, raising costs for many importers. This could drive shippers to route goods through Canada and Mexico, minimizing the impact of US tariffs. Additionally, these fees may reduce vessel calls and cause port congestion, as shipping lines focus on fewer, larger ports. Many large Chinese-built ships could also be redirected to markets like Asia-Europe, Asia-Africa, and Asia-South America, leading to oversupply and heightened competition in those regions.