Port Fees on Chinese-Built Ships

The U.S.–China trade conflict has opened yet another front, this time targeting the very vessels that carry global commerce. In April 2025, the U.S. government unveiled new port fees aimed specifically at Chinese-built ships, adding fresh complexity to an already strained shipping industry. The move, framed as a way to protect American shipbuilding and reduce dependency on Chinese-made fleets, is reverberating across carriers, ports, and global supply chains.

For decades, China has dominated the global shipbuilding industry, constructing much of the world’s container, bulk, and tanker fleets. Many of the vessels docking at U.S. ports, even those operated by European or American shipping lines, are Chinese-built. By imposing extra port charges on these vessels, Washington aims to reduce Chinese leverage in maritime trade while nudging shipping companies to purchase vessels from alternative builders in Korea, Japan, or even domestic yards.

It’s an industrial policy wrapped inside trade protectionism: the hope is that higher operating costs for Chinese-built ships will gradually shift demand back toward non-Chinese yards and bolster U.S. competitiveness.

For carriers, the new fees represent a direct cost increase. A large container ship calling at a U.S. port already faces tens of thousands of dollars in docking, handling, and service fees. With the new surcharge, the bill can rise by millions of dollars annually for vessels that make regular trans-Pacific trips.

Shipping lines now face tough choices: pass the costs to customers through higher freight rates, reroute vessels to avoid U.S. ports, or reallocate fleets to keep Chinese-built tonnage away from American terminals. Each option carries trade-offs in cost, efficiency, and customer satisfaction.

While the fees target ships, the burden of enforcement falls largely on U.S. ports. Terminal operators must verify vessel origins, apply the new charges, and navigate disputes with shipping companies. For ports already struggling with lower cargo volumes due to tariffs, the extra administrative workload and potential loss of traffic add to their challenges.

Some analysts warn that the policy could backfire if shipping lines reduce calls at U.S. ports to avoid fees, pushing more transshipment activity through Canadian, Mexican, or Caribbean gateways. Such a shift would weaken the very ports the U.S. is trying to protect.

The fees also risk fragmenting global trade routes. Carriers that operate international networks must now factor vessel origin into their planning, potentially reassigning Chinese-built ships away from U.S.-linked services. This adds complexity to fleet deployment and may encourage further consolidation among alliances, as companies share capacity to optimise around the new rules.

Meanwhile, Asian shipyards outside China stand to benefit. Korean and Japanese builders, already global leaders, may see increased orders as operators look to avoid U.S. penalties. For China, however, the impact may be muted in the near term, given its sheer scale and dominance in global shipbuilding.

The introduction of port fees on Chinese-built ships highlights how the U.S.–China trade conflict now extends beyond goods to the very infrastructure of global commerce. For carriers, the fees mean higher costs and tougher decisions about fleet allocation. For ports, they add both financial strain and competitive risk.

Ultimately, the measure underscores a larger reality: in today’s geopolitical climate, shipping is no longer just about efficiency. It is about power, leverage, and strategic positioning. As trade wars escalate, vessels themselves have become the latest battleground.