China will levy phased fees on U.S.-linked vessels calling at its ports starting on October 14, a retaliatory action set to take effect the same day as similar surcharges on China-linked ships calling at U.S. ports that were announced in April by the Office of the United States Trade Representative (USTR). Beijing will apply the fees to vessels under several classifications: those owned or operated by U.S. enterprises, organizations and individuals; those whose owners or operators are under direct or indirect ownership by U.S. entities holding a stake of at least 25%; and those built by or flagged under the U.S., the Ministry of Transport said in a statement. The Chinese government will impose the fees in gradually increasing phases, structured similarly to the U.S. plan: the fee will begin at CNY400 per net ton starting on October 14, CNY640 next April, CNY880 in April 2027 and CNY1,120 in April 2028. Vessels making multiple calls at Chinese ports will only pay the fee upon first arrival, and no vessel will be charged more than five times in a given year, the statement said, adding that fees will be collected by local maritime authorities under detailed guidance from the Transport Ministry. “We urge the U.S. to immediately rectify its mistakes and cease the unjust suppression of China’s maritime shipping industry,” China's Ministry of Transport said.
The new fees are being imposed under a revision of maritime transport rules made at the end of September, which allow Beijing to implement necessary countermeasures against any country or region that imposes or supports discriminatory bans, restrictions or similar measures targeting Chinese operators, vessels or crews. However, as the U.S.-owned or operated fleet deployed in China is smaller relative to the Chinese operators exposed to the U.S., it will have limited impact. Linerlytica calculated that the total fees payable by Chinese operators in the U.S. could reach USD1.15 billion in the first year of implementation, compared to just USD180 million for American operators under an identical framework.
But that analysis did not include the Transport Ministry’s inclusion of vessels owned or operated by entities with U.S. stakeholders. This may ultimately bring in more revenue than estimated, as private equity firms, banks and finance companies have significant holdings in maritime shipping. The U.S. port fee could subject the world’s top 10 carriers to USD3.2 billion in charges by 2026, with the fleet of Chinese Cosco Group being the most exposed, according to shipping data provider Alphaliner. The China Shipowners’ Association recommended that the Chinese government reply to the U.S. fees in kind, urging “decisive action” from the government to safeguard fair competition, the South China Morning Post reports.
