Caught in the crossfire: US-China port fees and their impact on global shipping

The maritime industry is entering a new phase of complexity as the United States and China implement reciprocal port fees, adding fresh layers of cost and regulatory scrutiny to international shipping operations. These measures, introduced on October 14, 2025, reflect broader geopolitical tensions and are prompting companies to reassess their exposure and operational strategies.

Understanding the New Port Fees

The US has introduced port fees targeting vessels with Chinese affiliations — whether through ownership, operation, or construction. China has responded with similar charges for US-linked vessels. Both sets of fees are structured to increase annually through to 2028, and they apply differently depending on vessel type and ownership profile.

US Port Fees:

• Chinese-owned (ie. More than 25% or more of the entity’s voting interest, board seats or equity is held directly or indirectly by the government or citizens of China, Hong Kong or Macau) or operated vessels: Starting at $50 per net tonne, rising to $140 by April 2028.
• Chinese-built vessels: Charged at $18 per net tonne or $120 per container, increasing to $33 or $250 respectively.
• Foreign-built vehicle carriers: Subject to a $46 per net tonne fee, capped at five port calls per year.

China Port Fees:

• Starting at 400 yuan ($56) per net tonne, increasing to 1,120 yuan ($157) by 2028.
• Fees are capped at five port calls per vessel per year.
• Applied to vessels with 25% or more US ownership, voting rights, or board representation — a definition that could encompass a wide range of publicly listed companies.

Financial Implications

The financial impact is significant, particularly for container vessels and vehicle carriers. For example:

• A Chinese-owned 10,000 TEU containership (60,000 net tonnes) could incur $1.08 million per US port call.
• A modern vehicle carrier (9,000 CEU, 35,000 net tonnes) might face $1.6 million per visit to the US.
• For a 180,000 dwt (70,000 net tonne) US-owned bulk carrier, the estimated cost of unloading in China would be around $4m per voyage, rising to $10.9m per voyage by 2028.
• A US-affiliated 300,000 dwt VLCC (approximate tonnage 100,000 net tonnes) would be looking at fees of around $5.6m per voyage to China under the current rules.

These costs are prompting companies to reevaluate their ownership structures, vessel flagging, and port call strategies.

Industry Response

Shipping companies are taking proactive steps to mitigate exposure:

• Seaspan has relocated its headquarters and reflagged over 100 vessels from Hong Kong to Singapore to avoid US port fees, while also citing reduced US ownership to meet the China’s ownership criteria.
• Pacific Basin has restructured its board and operations to avoid triggering port fee thresholds.
• Costamare introduced preferred stock mechanisms to limit US shareholder control.
• Okeanis Eco Tankers adjusted its board composition to reduce US representation.
• Maersk and Hapag-Lloyd have rerouted US-flagged vessels away from Chinese ports.
• Cosco has opted to absorb the fees to maintain its US service footprint.

These strategic shifts underscore the importance of clarity in ownership definitions and the need for flexibility in fleet management.

The Role of Lloyd’s List Intelligence

In this evolving regulatory landscape, access to accurate data and expert analysis is more critical than ever. Lloyd’s List Intelligence supports maritime stakeholders by:

• Clarifying complex ownership and operational criteria
• Monitoring regulatory developments
• Providing actionable insights to reduce risk and manage costs

As global shipping adapts to these new dynamics, informed decision-making will be key to maintaining resilience and competitiveness.

Providing clarity on the 25%

Seasearcher’s Ownership Intelligence solution can trace shareholders with US affiliations behind subject entities – providing intelligence on any significant stakes (e.g. ≥25%), the number of US shareholders, and their degree of separation from the vessel. The examples below focus on how our platform assists in identifying vessels that are, or have the potential to be, liable to Chinese port fees.

Examples:

Kanchana Naree

• IMO: 9434735
• Flag: Thailand
• Built: China
• Vessel Ownership: All known owners and counterparties linked directly to the vessel are based in Thailand, except for the Third-Party Operator (TPO), Swiss-registered ADM International Sarl.

Ownership Intelligence Insight: ADM International Sarl has five US shareholders, resulting in 100% US ownership two levels up (Chicago-based Archer-Daniels-Midland Company).

Quinn

• IMO: 9538842
• Flag: Singapore
• Built: China
• Vessel Ownership: All known owners and counterparties linked directly to the vessel are based in Singapore.

Ownership Intelligence Insight: Three separate companies, serving as the Registered Owner, Commercial Operator, Technical Manager, and ISM Manager of the vessel, each have five US shareholders, resulting in up to 100% US ownership three levels up (New York-based Morgan Stanley).

Seasearcher’s Ownership Intelligence solution maps out complex ownership structures within maritime trade – providing actionable insights to assist risk-based decision making.