Starting October 14th, the US Trade Representative’s (USTR) Section 301 tariffs on Chinese-built vessels will take effect.

The measures introduce two penalties: a $50 per net ton charge for Chinese carriers registered in mainland China or Hong Kong and not Taiwan, and a $120 per teu levy for ships constructed in China. If a carrier falls under both categories, it will only pay the higher of the two fees.

Our understanding of whether surcharges will be introduced by carriers is as below.

Gemini Cooperation

Within the Gemini Cooperation, no surcharge is expected. Hapag-Lloyd, operating in partnership with Maersk, has stated that most of its fleet originates from South Korea, meaning the alliance faces minimal exposure to the new tariffs. While this positioning is only confirmed by Hapag Lloyd, we expect it to apply to both.

Premier Alliance

The Premier Alliance has been proactively rerouting services, especially on the transpacific trade, to eliminate any of their Chinese-built vessels calling at US ports. As a result, HMM, ONE, and Yang Ming appear unlikely to impose any tariff-related surcharges, though final confirmation is still pending.

Ocean Alliance

The Ocean Alliance faces a more complicated landscape. CMA CGM has already stated it does not intend to apply surcharges for now, but its partners Cosco and OOCL – being Chinese-owned carriers – are far more exposed. Analysts estimate these operators could face as much as $2.1 billion in additional costs in 2025, though it remains unclear whether they will seek to recover these expenses through customer charges.

Meanwhile, MSC, the world’s largest container line, has yet to reveal its stance, adding some uncertainty to the outlook.

For now, however, the broader story appears to be that several carriers will be absorbing or diverting costs rather than imposing surcharges, suggesting the supply chain disruption may be less severe than first feared when the USTR fees were officially announced in April.

For further information, or to discuss our extensive range of services in and out of the US, please do not hesitate to contact a member of the Westbound team.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.