by Lloyd's List
18 April 2025 (Lloyd's List) - THE US Trade Representative released its much-anticipated port fee plan on Thursday, and while the plan still carries serious ramifications for shipping, it is substantially scaled back from previous proposals.
Some of the headline takeaways: fees will be assessed per journey or port rotation, rather than individual port call; no fees based on fleet composition; no fees for placing orders in Chinese yards; no fees for the first 180 days (fees begin October 14, 2025); and vessels can be subject to only one of the fee categories – they do not stack.
There are notable exemptions for fees on Chinese-built ships calling in US ports. However, vessels deemed to be owned or operated by Chinese entities will incur fees without any exceptions.
The USTR described the plan as having two phases. The first begins in 180 days (October 14, 2025), when the port fees kick in for Chinese-owned and Chinese operated vessels, Chinese-built vessels, and foreign-built car carriers. The fees will incrementally increase over the following years. The second phase begins in three years, when limitations on transportation of US-origin LNG on foreign-built liquefied natural gas carriers will be implemented and progressively increased over 22 years.
“Ships and shipping are vital to American economic security and the free flow of commerce,” USTR Jamieson Greer said in a statement. “The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the US supply chain, and send a demand signal for US-built ships.”
Vessels calling in the US will be subject to fees or requirements laid out in five annexes: I) Service fee on Chinese vessel operators and vessel owners of China II) Service fee on vessel operators of Chinese-built vessels III) Service fee on vessel operators of foreign-built vehicle carriers IV) Restrictions on certain maritime transport services, and V) Tariffs on ship-to-shore cranes and cargo handling equipment of China.
The fees will be assessed in the following order: An LNG carrier is subject to annex IV but is not subject to fees in the other vessel-specific annexes. A vehicle carrier is subject to annex III. A vessel that meets the conditions in annex I will be subject to that fee structure. A vessel may be subject to annex II when annexes I and III are not applicable.
Chinese vessel operators and owners
Chinese owners or operators will incur a fee when their vessels call at US ports regardless of where they were built. The fee applies to entities in Hong Kong and Macau as well.
A vessel's owner and operator were defined as the entities identified as the owner and operator in documents submitted to the US Customs and Border Protection.
The fee will be assessed per rotation or string of port calls and will begin at $50 per net tonne in 180 days and increase incrementally over the next three years.
The decision to charge per string of port calls rather than per individual call stemmed from concerns that it would lead liner operators to skip smaller ports, the USTR said.
Fees on Chinese-built vessels calling in the US
The USTR received over 600 comments since releasing its proposal in late February and almost 60 individuals participated in two public hearings held in March. The final plan showed it took much of the feedback it received to heart.
The fee for Chinese-built vessels calling in US ports will be assessed on a per net tonnage or per container fee basis, whichever is higher. Here too, the fees will be assessed per rotation or string of US port calls and will begin rising incrementally over a period of three years starting from October 2025.
However, the USTR made notable carve outs.
Chinese-built vessels are exempted from the fees if they arrive empty – a relief for US exporters of bulk commodities. There are also exemptions for vessels engaged in short-sea shipping (voyages of under 2,000 nautical miles from US ports); boxships with a carrying capacity equal to or below 4,000 teu, bulk commodity ships of 55,000 dwt or less, or “an individual bulk capacity of 80,000 dwt” or less.
There are also exemptions for Chinese-built vessels participating in US government programmes, such as the Tanker Security Program, and for Chinese-built vessels that are controlled by US persons and are at least 75% beneficially owned by a US person, among others.
An operator subject to a fee may receive a remission for up to three years if it orders and takes delivery of a US-built ship of an equivalent or larger capacity within that time period.
Vehicle carrier fees
Every foreign-built vehicle carrier (not just Chinese) will be subject to a fee based on its car equivalent unit capacity. The fee will start at $150 per ceu when the assessments begin in October 2025.
Here too, operators could receive a remission for ordering and taking delivery of a US-built vessel.
LNG carrier and export requirements
The second phase of the USTR’s plan begins after three years and is aimed specifically at US LNG exports.
Starting from April 2028, 1% of all US LNG exports will have to be exported on US-flagged and US-operated vessels. Starting in April 2029, the requirement expands to include the vessel also be US-built. The proportion of LNG to be exported on US-built, flagged, and operated vessels will increase gradually to 15% by 2047.
The export requirement “will not apply to a particular vessel for a period not to exceed three years if the vessel owner orders and takes delivery of a US-built vessel of equivalent or greater LNG capacity, measured in cubic feet,” the USTR said.
The USTR may suspend export licenses if these carrying conditions are not met.
Tariffs on Chinese-built STS cranes and cargo handling equipment
In line with US President Donald Trump’s recent executive order “Restoring America’s Maritime Dominance”, the USTR also proposed fees on Chinese cranes and cargo handling equipment.
The USTR proposed duties of between 20% and 100% on Chinese-made containers, chassis and chassis parts, and a 100% duty on STS cranes made in China, or that are composed of certain parts that are made in China
