China hits back at US ships with additional port fees
The fees are a countermeasure against upcoming US port fees
[BEIJING] Vessels owned or operated by US firms and individuals – or those built in the US or that fly the US flag – will be charged additional port fees per voyage starting on Oct 14, China’s transport ministry said.
The fees are a countermeasure against upcoming US port fees on Chinese ships, the ministry said on Friday (Oct 10).
Also starting on Oct 14, ships built in China – or operated or owned by Chinese entities – will need to pay a fee at their first port of call in the US. Fees could top US$1 million for a ship carrying more than 10,000 containers, and could rise annually through 2028, according to analyst estimates.
Vessels owned or operated by a Chinese entity will face a flat fee of US$80 per net tonnage per voyage to the US.
The US fees on China-linked vessels, following a probe by the US Trade Representative, are part of a broader US effort to revive domestic shipbuilding and blunt China’s naval and commercial shipping power.
“It is clearly discriminatory and severely damages the legitimate interests of China’s shipping industry, seriously disrupts the stability of the global supply chain, and seriously undermines the international economic and trade order,” the Chinese ministry said.
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Over the past two decades, China has catapulted itself to the No 1 position in the shipbuilding world, with its biggest shipyards handling both commercial and military projects.
The Chinese fees on US vessels could hurt the US less than the US fees to be heaped on the legion of Chinese ships.
The fees announced by China, like those put in place by the US, “add further complexity and cost to the global network that keeps goods moving and economies connected, and risk harming their exporters, producers, and consumers at a time when global trade is already under pressure”, said Joe Kramek, president and CEO of the World Shipping Association.
Last year, Chinese shipyards built more than 1,000 commercial vessels, while the US constructed fewer than 10, according to military and industry analysts.
For US vessels berthing at Chinese ports from Oct 14, the rate will be 400 yuan (S$72.90) per net tonne, the Chinese transport ministry said. That will increase to 640 yuan from Apr 17, 2026, and to 880 yuan from Apr 17, 2027.
For vessels calling at Chinese ports from Apr 17, 2028, the charge will be 1,120 yuan per net tonne.
Tensions between China and the US have started to deepen since September, with the two superpowers looking to be struggling to move beyond their current trade tariff truce – a 90-day pause from Aug 11 that ends around Nov 9.
Retaliatory tariffs in the US-China trade war this year have sharply curtailed Chinese imports of US agriculture and energy products.
“There is not much impact likely on agriculture trade, but this step goes to show that China is still irritated with US and they are not going to allow US agricultural imports anytime soon,” said one oilseed trader at an international company, which sells soybeans to China.
“You don’t take such steps if you’re trying to resolve matters. Chinese crushers might have to do without US beans this year.”
US President Donald Trump and Chinese leader Xi Jinping are expected to meet as they attend an Asia-Pacific Economic Cooperation in South Korea at the end of this month.
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