China Pushes Back Against U.S. Port Fee Proposal for Chinese Vessels
China is strongly opposing the White House’s proposal for port fees on Chinese tonnage, which would significantly increase costs for specific classes of vessels calling in the U.S. The proposed fees could make American port calls uneconomical for Chinese owners and operators, with charges peaking at $140 per net ton per visit.
In a statement on Friday, China’s commerce ministry criticized the U.S. measures, claiming they expose the unilateral and protectionist nature of American policies. The ministry emphasized that these actions seriously harm the legitimate rights and interests of Chinese companies, disrupt the stability of global supply and production chains, and violate World Trade Organization rules.
The China Shipowners’ Association (CSA) joined the condemnation, urging the U.S. to halt all “discriminatory measures” and adhere to global trade rules. The association also rejected USTR’s allegations of unfair competition.
The fee structure targets not only Chinese ownership but is primarily aimed at Chinese shipbuilders, meaning any Chinese-built ship would incur charges. If not owned by Chinese interests, laden Chinese-built ships would face a fee of $50 per net ton per visit, or $120 per import container discharged if the dollar value is higher. Compared to earlier proposals from the USTR, this revised fee has been relatively well-received in some segments of the liner industry. Additionally, a new exemption for vessels on ballast voyages may allow Chinese-built tankers, LNG carriers, offshore service vessels, and bulkers to avoid charges when arriving empty.
Despite the reduction in fees compared to earlier proposals, the China Association of National Shipbuilding Industry (CANSI) criticized the announcement, labeling the charges a violation of trade rules and a threat to the development of international shipping.
Car carriers built outside the U.S., whether in China, Korea, Japan, or Europe, would also incur a flat charge of $150 per car equivalent unit of capacity, even when arriving empty. For a large car carrier arriving at an East Coast port, this could result in additional fees exceeding $1 million per visit. American exporters of roll-on/roll-off cargo, including companies like John Deere, Caterpillar, GM, Toyota, and Mercedes, which export vehicles from U.S. factories, would be impacted.
Vessels owned in the U.S. or enrolled in U.S. sealift subsidy programs are exempt from these fees, as are vessels engaged in shortsea voyages.
