U.S. Fees on China-Built Ships Draw Ire --- Swath of companies and trade groups warns of higher costs, job losses

"A broad cross-section of American business is dialing up its opposition to the Trump administration's plan to impose steep fees on Chinese ships calling at American ports.

About 300 companies, trade groups and individuals submitted comments or requests to speak at a hearing that will run for two days this week in Washington. Nearly all the groups oppose the proposal put forward last month by the U.S. Trade Representative's office to impose new fees each time a Chinese-built vessel enters a U.S. port.

Aimed at countering the decadeslong rise of China as a maritime power, the proposed fees are similar to suggested levies included in a draft executive order under consideration to bolster U.S. shipping.

The proposed fees came in response to a probe begun a year ago under then-President Biden, and mark a rare example of bipartisan agreement in Washington.

The U.S. would charge carriers between $500,000 and $1.5 million for each port call by a Chinese-built vessel, depending on the percentage of Chinese-made ships in a carrier's fleet. An additional fee would be charged based on the percentage of ships a carrier has on order at Chinese shipyards.

If enacted as originally floated, the fees would drive carriers to make fewer port calls, raise freight rates and delay deliveries, according to comments by importers, exporters, retailers, shipping companies, farm groups, commodity dealers, logistics businesses and others.

"The fees will result in cost increases of hundreds of dollars per container for cargo owners at a time when they continue to face challenges and pressures in their supply chains," the National Retail Federation's vice president of supply chain, Jonathan Gold, wrote to the USTR.

The USTR plans include a target to move 15% of exports on U.S.-flagged ships in seven years, up from less than 1% today, and 5% on U.S.-built ships. Currently, no American shipyards can build the large ocean carriers used in global trade.

"Only China and Korea have the capacity to build big containerships," said Nils Haupt, a spokesman at German container line Hapag-Lloyd, the world's fifth largest. "The U.S. or any other country can't fill up the void, and even if it did, it's significantly cheaper to build ships in China, less than half."

The port fees would cost the shipping industry about $20 billion a year, or an average $600 to $800 extra for each container in ocean trades such as the Trans-Pacific, said Soren Toft, chief executive of Mediterranean Shipping, the world's biggest liner.

Angeliki Frangou, CEO of Athens-based Navios Group, which runs 176 ships, said the cost of the fees would be passed through to the charter party as a cost of operating the vessel.

"This means that the tariffs would be added to the transportation costs of all the goods on these vessels, and that the cost of these tariffs will be borne by the consumer," Frangou said.

The International Longshore and Warehouse Union, which represents West Coast dockworkers, said the extra charges would encourage carriers to unload cargo outside the U.S. and then truck it across the borders with Mexico and Canada. This could lead to job losses at ports if box volumes dive.

The Agriculture Transportation Coalition, which represents most U.S. farm exporters using ships, warned the fees risk making American farm exports too expensive.

"The hogs in China couldn't give a damn where the soybeans come from," said Peter Friedmann, the coalition's executive director. "You've essentially told those exporters you're out of business."" [1]

1.  U.S. Fees on China-Built Ships Draw Ire --- Swath of companies and trade groups warns of higher costs, job losses. Paris, Costas; Berger, Paul.  Wall Street Journal. Eastern edition; New York, N.Y.. 25 Mar 2025: B5.