USTR’s Final Actions on Maritime and Shipbuilding Sectors

On April 17th, 2025, the United States Trade Representative (USTR) announced final trade actions following the Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors. These measures aim to address competitive imbalances caused by China’s state subsidies and preferential treatment for its state-owned enterprises, which have significantly increased China’s global shipbuilding tonnage. The USTR’s actions are designed to reduce economic security risks, enhance supply chain resilience, and promote the development of the U.S. maritime industry.

Key Highlights of the Final Trade Actions

1. Phased Fees and Non-Stackable Charges
   • The fees are phased over time, starting at zero for the first 180 days.
   • None of the fees are stackable, and they are no longer assessed per port call.
   • Export restrictions apply only to liquified natural gas (LNG) shipments.
2. Fees on Chinese Operators
   • Charged per rotation of port calls, with a maximum of five charges per vessel per year.
   • Starting October 14, 2025, operators will be charged $50 per net ton of the arriving vessel, increasing by $30 annually until reaching a maximum on April 17, 2028.
3. Fees on Chinese-Built Vessels
   • Assessed per rotation of port calls, based on either the net ton amount of the arriving vessel or the number of containers discharged, whichever is higher.
   • Starting October 14, 2025, operators will be charged $18 per net ton or $120 per container discharged, increasing annually until reaching a maximum on April 17, 2028.
4. Fees on Foreign-Built Vehicle Carriers
   • Starting October 14, 2025, each foreign-built vehicle carrier must pay $150 per car equivalent unit of capacity per rotation of port calls.
   • This fee will not apply to vessels if the owner orders a U.S.-built vessel of equivalent or greater tonnage.
5. Export Restrictions on LNG Shipments
   • Starting April 17, 2028, a certain proportion of LNG exports must be shipped on U.S.-flagged, built, and operated vessels, beginning at 1% and rising to 15% by April 17, 2047.

Exemptions from Fees

The fees do not apply to certain vessels, including:

• Vessels with a capacity of equal to or less than 4,000 20-foot equivalent units, 55,000 deadweight tons, or an individual bulk capacity of 80,000 deadweight tons.
• Vessels entering a U.S. port in the continental United States from a voyage of less than 2,000 nautical miles from a foreign port or point.
• U.S.-owned vessels, where the U.S. entity owning the vessel is controlled by U.S. persons and is at least 75 percent beneficially owned by U.S. persons.
• Specialized or special purpose-built vessels for the transport of chemical substances in bulk liquid forms.
• Vessels principally identified as “lakers vessels.”

A vessel operator is eligible for a fee remission for up to three years if it orders and takes delivery of a U.S.-built vessel of equivalent size.

Second Phase Actions

The second phase actions will not take place for three years and involve limited restrictions on transporting liquified natural gas (LNG) via foreign vessels to incentivize U.S.-built LNG vessels. USTR says these restrictions will increase incrementally over 22 years.

Major Shipping Vessel Companies

China is home to several major shipping companies that dominate global trade routes. Some of the largest Chinese shipping companies include:

• COSCO Shipping Group: Operates over 1,400 ships with a total capacity of over 113 million deadweight tons (DWT).
• China Merchants Energy Shipping (CMES): Operates 314 ships with a total capacity of 44.2 million DWT.
• Evergreen Marine Corp: Known for its extensive global network, operating routes connecting Asia to North America, Europe, the Middle East, and Australia.

Several other major shipping companies operate globally, including Maersk, MSC, and Hapag-Lloyd. Here’s a brief overview of their fleets:

• Maersk: Operates a fleet of over 700 vessels, with a significant portion being Chinese-built.
• MSC (Mediterranean Shipping Company): Operates a fleet of over 600 vessels, many of which are Chinese built.
• Hapag-Lloyd: Operates a fleet of 287 modern container ships, with a mix of Chinese-built and other foreign-built vessels.

Orders for American-Made Ships

There have been efforts to encourage major shipping companies to order American-made ships to offset penalties. For example, Maersk and Hapag-Lloyd have entered into operational collaborations to enhance their fleets. However, specific details on orders for American-made vessels are limited.

Average Additional Cost Analysis

To understand the financial impact of these fees, we analyzed the average additional cost per container for both importers into the US and exporters out of the US. The average additional cost per container, based on the fees for Chinese-built vessels, is calculated as follows:

• 2025: $120 per container
• 2026: $153 per container
• 2027: $186 per container
• 2028: $219 per container

Conclusion

The USTR’s final trade actions represent a balanced approach to addressing China’s dominance in the maritime, logistics, and shipbuilding sectors. By phasing in fees and limiting their stackability, the USTR aims to mitigate the impact on global trade while encouraging the use of U.S.-built vessels. Importers and exporters should prepare for these changes and consider their long-term strategies to adapt to the evolving trade landscape. A trusted and knowledgeable logistics company can help traders navigate these recent maritime developments.

The American Association of Port Authorities (AAPA) has acknowledged improvements in the USTR’s proposal but highlighted ongoing challenges. The AAPA is concerned about the impact of fees on Chinese vessels and new tariffs on cargo-handling equipment, which could increase shipping costs and reduce trade volumes. They also emphasized the need for incentives to support domestic production of ship-to-shore cranes to prevent negative impacts on port development.