China has instituted a series of retaliatory port fees targeting U.S.-owned vessels that dock in its ports. This decision follows the announcement of port fees by the U.S. government on Chinese ships. The measures come ahead of anticipated trade talks between U.S. President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) forum, scheduled for the end of October.
Details of China’s Retaliatory Port Fees
The Chinese Ministry of Transport reported on Friday that the fees will affect vessels owned, operated, or flagged by the United States. Starting October 14, these ships will incur a charge of 400 yuan (approximately $56) per net ton for each docking. This fee will apply up to five times per year for each vessel.
- Initial Fee: 400 yuan ($56) per net ton
- Incremental Increase: Fees will rise annually until reaching 1,120 yuan ($157) per net ton in 2028.
- Implementation Date: October 14, coinciding with the U.S. fee imposition on Chinese ships.
Response to U.S. Trade Practices
The Ministry described these special fees as “countermeasures” against what it termed “wrongful” practices by the United States. The ministry condemned the U.S. fees, labeling them as “discriminatory” actions that threaten the interests of China’s shipping industry and disrupt international trade order.
Beijing’s announcement is part of a broader strategy that includes new restrictions on exporting rare earths and related technologies, alongside limitations on lithium battery production equipment exports. Analysts suggest these measures may significantly impact shipping and trade.
Impact on U.S. Shipping and Trade
Experts assert that the new port fees from China are not merely symbolic. Kun Cao, deputy chief executive at Reddal, indicated that this policy specifically targets ships with substantial U.S. affiliations—whether in ownership, operation, flags, or origin. The escalating fees are designed to affect larger vessels disproportionally.
While North America contributes around 5% to global fleet ownership, its share of commercial shipbuilding is just 0.1%. This has led to concerns about the long-term viability of U.S. shipping interests in light of these escalating tariffs.
U.S. Port Fees on Chinese Ships
In response to these developments, the U.S. plans to charge Chinese vessels $50 per net ton, with incremental increases of $30 each year until 2028. Each ship will face this fee a maximum of five times annually, similar to the fees introduced by China. Although some analysts predict limited impacts on global trade and freight rates, shipping data firm Alphaliner has warned that U.S. port fees could result in costs up to $3.2 billion for major carriers in the coming year.
Each of these maneuvers in the ongoing trade conflict illustrates the tense economic relationship between the U.S. and China, amplifying concerns over future trade negotiations.
