US softens port fee plan on China-linked ships to protect exporters

The Trump administration scaled back its plan to impose steep port fees on Chinese-built ships, easing concerns among domestic exporters, vessel operators, and global shippers. A revised notice from the US Trade Representative (USTR), published Thursday, granted broad exemptions to carriers operating in the Great Lakes, Caribbean, and US territories. Originally, the proposal included charges of up to $1.5 million per port call, but it now includes more moderate fees and exemptions to avoid higher export costs and import prices.

The changes address strong opposition from the maritime industry, including US shippers and port operators, who warned the original plan would disrupt global trade and burden consumers with $30 billion in added import costs. The final rules now exempt empty vessels arriving for US exports. LNG carriers also have a gradual mandate, starting with just 1% of US exports to be moved on domestically built and flagged ships within four years, increasing to 15% by 2047.

Fee structures were also adjusted. Instead of a flat fee, charges will be based on net tonnage or per container discharged. Chinese-built and owned ships will pay $50 per net ton starting October 14, increasing by $30 annually for three years. Alternatively, they can be charged $120 per container, rising to $250. Ships built in China but owned by non-Chinese firms face lower fees of $18 per net ton, with smaller annual hikes. These measures aim to give foreign carriers like MSC and Maersk a competitive advantage over Chinese state-owned firms like COSCO.

The announcement coincided with the one-year anniversary of the USTR’s investigation into China’s maritime practices, which concluded that Beijing uses unfair policies to dominate shipping. Meanwhile, the USTR will review proposed tariffs on cranes and container chassis at a May 19 hearing, with plans to impose a 100% tariff on Chinese-made port cranes.