U.S. Proposes Port Fees on Chinese-built Ships and Operators to Counter China’s Shipping Dominance

The U.S. Trade Representative (USTR) has proposed new fees on vessels operated by Chinese ship operators or built in China calling on U.S. ports as a means to counter China’s dominance in the maritime sector and bolster U.S. shipping interests. The new proposal includes a $1 million per U.S. port call fee on Chinese vessel operators and a $1.5 million fee per U.S. port call for Chinese-built vessels. A service fee would be instituted on each U.S. port call by vessel operators, regardless of their nationality or vessel flag, with vessels on order from Chinese shipyards.

The proposal also includes the potential phase-in of “commercial cargo preference,” under which a percentage of all U.S. ocean exports will be required to be carried in U.S.-flag vessels, starting at one percent and stepping up to 15 percent within seven years.

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