The US is introducing new port fees targeting merchant vessels with links to China. It’s claimed the move is aimed at countering China’s dominance in shipbuilding and container shipping. However, the move has been subject to criticism, as it’s set to raise costs and create complexity for global shippers.
In this article we will outline exactly what is changing, how it will impact and shippers and some guidance on how you should respond.
What Are the USTR Fees?
From 14 October 2025, the US Trade Representative (USTR) will impose new port fees on Chinese-built vessels calling at US ports. These fees will most aggressively target ships owned or operated by Chinese companies. But ships built in China and owned by non-Chinese operators will still face charges.
Most of the main container shipping lines, such as the likes of MSC, Maersk, CMA CGM and Hapag-Lloyd are European owned, meaning they will not be subject to the harshest charges. But will still face significant cost increases.
Meanwhile, the Chinese-owned carrier COSCO looks set to be effectively priced out of the US market. As they will be charged regardless of whether the ship docking is China built. But we will have more on how the carriers will be impacted in the next section.
The charges, and their implementation dates, are as follows:
Source: Drewry Container Market Outlook Webinar
However, there are a limited number of exemptions to the charges, which are as follows:
- Ships under 4,000 teu
- Voyages under 2,000 nautical miles
- US-flagged ships under the Maritime Security Program
- Ballast voyages (no cargo)
- Services limited to the Caribbean, US coastwise, or Great Lakes
Which carriers will be hit hardest by the new USTR charges?
To understand which carriers are most exposed, we need to look at two things: the share of each carrier’s fleet that was built in China, and how much of their future capacity (orderbook) is also coming from Chinese yards.
We have omitted COSCO from the below table, as all their ships are China-operated, meaning they will de-facto pay charges regardless of where the ship was built.
Here’s how the major container lines compare:
Multiple sources. Figures are estimates based on fragmented available data online, from Alphaliner, TradeWinds, Clarkson’s Research, Lloyd’s List and the carriers themselves.
The likes of MSC, CMA CGM, and Maersk and Hapag-Lloyd are more exposed due to a high percentage of their existing orders coming from China.
Meanwhile, as a South Korean state-owned carrier, HMM have consistently ordered from South Korean shipyards, which until recent years were extremely dominant. Consequently, they look set to avoid charges altogether.
So those with large Chinese-built fleets could see higher fees on many of their vessels, unless they take mitigating actions. Which we will look at next.
How are carriers expected to respond to the new USTR charges?
Vessel swapping and service changes
The obvious solution is for carriers to rotate Chinese-built vessels away from US trade lanes and replace them with ships built elsewhere.
We can expect with relative certainty the main carriers will do this, as high exposure to these fees will make them extremely uncompetitive.
Ocean Alliance, which includes the Chinese operated COSCO and OOCL, face a bigger challenge. They are likely to reshuffle and move their Chinese-operated ships away from the US. Instead using the ships of fellow alliance partners Evergreen and CMA CGM to serve the USA.
Ship order strategy shift
The US administration will be hoping that carriers once again favour South Korean (or US) shipyards with their orders. China has become dominant producer in recent years, primarily for cost reasons, but the aim of this legislation is to challenge that.
Although carriers themselves will no doubt be hoping that this is a short-term Trump Administration policy. They will need some convincing it will be in place for the long term, before ordering ships from other nations at additional cost.
The lead time on a new vessel ordered today is 3+ years, meaning any new vessel ordered won’t arrive until virtually the end of this current US Administration. If carriers believe the policy will be scrapped over that time frame, they are unlikely to shoulder the additional cost of a ship produced elsewhere.
Charter market dynamic changes
Older, non-Chinese-built tonnage is suddenly more attractive for US trade lanes. Many expected it to increase prices for those vessels and we’re already seeing this as HMM are sub-letting their Hyundai Singapore vessel for three times the price they’re paying to MSC. We can assume this is motivated by South Korean=built tonnage suddenly becoming more attractive. Meanwhile, second-hand Chinese-build tonnage could be going spare.
Routing and schedule changes
Expect more transhipments via Canada, Mexico, or the Caribbean to bypass the fee structure. Some carriers may limit the number of US port calls per vessel.
“We could see a lot of the schedule movement at the end of 2025, when the carriers typically unveil their schedules for the coming year. I expect we will see a reduction in the number of calls at US ports from some carriers. Although these fees arrive in October 2025, they start to get particularly brutal from April 2026. The carriers will be very mindful of that.”
Liam Launders, Head of Sales, WTA
What the USTR fees mean for shippers
The USTR fees won’t just impact shipping lines and how they structure their fleets. Whilst they tweak their networks, we can assume any additional costs they do pick-up will be passed onto the shipper.
That means these charges will affect your margins, routing choices, and contracts for both US and non-US based shippers. For European exporters who are trading with the US, obviously your transatlantic shipments are the risk here. For US-based shippers, it's any deep-sea trade.
The time to act is now. Begin by requesting more vessel information about the ship your cargo is on. Conduct an audit to understand where you’re at risk. Speak to your carrier or logistics provider about how they plan to deal with these charges. Plans should be in place for rotating Chinese-built vessels away from the US.
Don’t be surprised to see some USTR fee surcharges appearing from October, but you can reasonably expect these to be limited. If you deem these charges to be excessive then seek out a new carrier directly, or speak to your logistics provider about finding a new provider. It’s certainly something we would be happy to help with.
Alternatively, you can ask for pricing or surcharge limits in contracts, to protect you somewhat. Another option is to look at routing cargo through Mexico or Canada with onward road transportation from there. That would go some way to negating the fees.
The USTR fees are US attempts to shape the future of shipping. Unfortunately, it's international shippers, and especially those moving through the US, who’ll be footing the bill. Staying informed and proactive will make the difference between absorbing rising costs and managing them strategically.
This is exactly where WTA comes into its own as a logistics service provider. Strategic cost-saving advice across an entire supply chain. Reach out now to begin enhancing your logistics across the board.
