China to levy special port fees on US vessels in response to US surcharges

China will impose special port fees on US-built or US-affiliated vessels starting October 14, a direct countermeasure to the US surcharges on Chinese ships that will come into force on the same day, according to an announcement from China's Ministry of Transport on October 10.

Later in the day, U.S. President Donald Trump announced to impose an additional 100% tariff on imports from China starting next month plus export controls on critical software in reprisal for China's expanded curbs on rare earth exports on October 9. These measures signaled resurgent trading tensions between the world's two largest economies despite a 90-day tariff truce they made on August 11.

China's newly announced port fees apply to vessels that are owned or operated by US enterprises, organizations or individuals, vessels in which US entities directly or indirectly hold at least 25% ownership, vessels flying the US flag, and vessels constructed in US, as the announcement clarifies.

The special port fees will be levied on a per-voyage basis for the aforementioned vessels according to the following schedule: Yuan 400 ($56) per net tonne for vessels calling at Chinese ports from October 14; Yuan 640 from April 17, 2026; Yuan 880 from April 17, 2027; and Yuan 1,120 from April 17, 2028. Vessels calling at multiple Chinese ports within the same voyage are required to pay the special port fees only at the first port of call, and one vessel is subject to a maximum of five special port fee assessments per calendar year.

Earlier this year on April 17, the US Trade Representative (USTR) announced final measures under its Section 301 investigation into China's maritime, logistics, and shipbuilding sectors to impose port fees on relevant Chinese vessels starting October 14, as Mysteel Global reported.

On October 3, the US Customs and Border Protection (CBP) published detailed requirements for imposing the port fees, specifying that a vessel owned or operated by a Chinese entity will be subject to a fee of $50 per net ton upon arrival at US ports, and a Chinese-built vessel operated by a non-Chinese company will be charged the greater of $18 per net tonne or $120 per each container discharged, along with $14 per net tonne for vehicle carriers, including roll-on/roll-off vessels.

"China finds it necessary to adopt countermeasures to protect the rightful interests of Chinese industries and enterprises, as well as to uphold a fair competitive environment in the international shipping and shipbuilding markets," said a spokesperson of China's Ministry of Commerce.

Concerns are mounting that the port fees could increase costs and disrupt global shipping and supply chains. China's shipbuilding industry and vessel exports so far this year have remained largely unaffected though, Mysteel Global notes.

During January-September, China exported a total of 5,226 vessels, representing a large rise of 23.5% compared with the same period last year, according to the latest data released by the country's General Administration of Customs on October 13.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com