The first half of 2025 has witnessed a notable decline in new shipbuilding orders in China, a trend that can be directly linked to the upcoming US Trade Representative (USTR) port fees set to take effect in October 2025.

China, which has traditionally dominated the global shipbuilding market, has seen its market share drop from 72% to 52% as a result of the impending port fees. While the country continues to receive the largest portion of new shipbuilding orders worldwide, this recent downturn signals a shift in the global shipping landscape, fueled by new regulatory pressures.

Starting in October, a fee of $18.00 per net tonne, with a minimum of $120.00 per container, will be imposed on Chinese-built and Chinese-operated vessels calling at US ports. The USTR’s plan is to incrementally raise this fee, reaching $33.00 per tonne, with a minimum of $250.00 per container, by April 2028.

USTR fees also heavily penalise Chinese carriers, who will receive an ‘additional’ fee of $50.00 per net tonne, which rises incrementally to $140.00 per net tonne by April 2028.

The latest developments include the exemption of some smaller ships from these fees and the decision to only apply the fee once during a vessel’s rotation. However, with ongoing trade negotiations between the US and China, it remains possible that further adjustments to the fee structure could be made.

Uncertainty remains on how carriers will adapt to and pass on the new fees, which leaves exporters and importers in a state of flux. Westbound are closely monitoring the situation and will provide updates as new information emerges.

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