There has been much talk during the past week about USTR port fees and the impact they may have on ocean freight shipping to and from the US, with some suggesting the new fees could price Chinese carriers out of the trade.

To clarify, the US Trade Representative (USTR) confirmed last week that Chinese owned or built cargo ships would be subject to additional fees when arriving at US ports from October this year.

While the original plan was to tax carriers up to $1.5m per vessel, based on the number of Chinese built vessels in their fleet, the confirmed fees are considered a watered down version based on a price per tonne of net product unloaded or loaded.

However, the fees are still significant, especially for Chinese carriers, including those based in Hong Kong or Macau, who will receive two sets of fees when their vessels are also built in China.

The fees for containerships are as follows:

Index I – Ships owned by Chinese Carriers
From October 2025: $50.00 per net tonne.
From April 2028: $140.00 per net tonne.

Index II – Ships built in China
From October 2025: $18.00 per net tonne, minimum $120.00 per container
From April 2028: $33.00 per net tonne, minimum $250.00 per container.

According to a recent analysis, Chinese carriers could incur more than $500 per 40ft from October and over $1400 per 40ft by April 2028, which would make it very difficult for them to compete.

Assuming the new fees will be passed on to exporters and importers, and considering the risk that Chinese carriers could be excluded, it looks like US ocean freight will become more costly from October, unless the US government backtracks.

Westbound is monitoring developments closely.

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