NEW U.S. POLICY ON FEES FOR CHINESE-BUILT SHIPS

On April 17, 2025, the Trump administration announced a new service fee policy targeting vessels built in China that dock at U.S. ports. This initiative aims to restore the domestic shipbuilding industry and reduce reliance on China, which currently builds 75%-80% of the world’s shipping fleet.

A joint investigation by the U.S. Trade Representative (USTR) under both the Biden and Trump administrations found that China’s shipbuilding policies were unfair and harmful to U.S. trade and supply chain security.

Key Highlights:

• Fees apply per voyage, starting at $0 and increasing annually based on vessel type and deadweight tonnage.

• Maximum fees: up to $250/container or $140/ton, capped at 5 applications per vessel annually.

• Fee reductions or exemptions available for shipowners who can provide proof of U.S. shipbuilding orders.

• Full exemptions for vessels operating in the Great Lakes, Caribbean, inter-U.S. routes, empty vessels, and bulk export cargo like coal or grain.

• Phase 2: Starting in three years, the U.S. will begin restricting LNG shipping on foreign-built vessels over a 22-year period.

The policy enjoys bipartisan support and marks a major shift in U.S. maritime and energy supply chain strategy.

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