Beijing retaliates against U.S. shipping levies
Starting Tuesday, China will impose port fees on vessels owned, operated, built, or flagged by U.S. entities, in response to similar fees being introduced by the U.S. on China-linked ships the same day. The announcement was made by China’s transport ministry on Friday, marking an escalation in maritime tensions between the world’s two largest economies.
The new Chinese fees will also target companies where U.S.-based investment funds hold 25% or more of shares or board seats, potentially affecting a broader range of ships beyond those directly flagged or built in the U.S. The move adds friction to an already strained shipping network.
Impact on shipping companies and global trade
Affected firms include U.S.-based Matson, which confirmed it will not alter its service schedule despite the added costs. Other impacted entities may include American President Lines, Israel-based Zim, and Seaspan, whose fleets are chartered by several major container lines.
Shipping analyst Lars Jensen warned that over 100 Seaspan vessels could face dual port fees — in the U.S. and China — raising operational costs substantially. Meanwhile, COSCO and its OOCL subsidiary could face around $2 billion in U.S. fees by 2026.
On the U.S. side, any vessel built in China, or owned or operated by Chinese entities, will now pay a flat $50 per net tonnage per voyage. The fees are part of a U.S. initiative to revitalize domestic shipbuilding and reduce China’s maritime dominance.
Beijing denounces U.S. fees as discriminatory
China’s Ministry of Transport called the U.S. policy discriminatory, claiming it threatens global supply chain stability and undermines international trade rules. In a follow-up statement, the commerce ministry defended China’s response as a justified self-defense measure to protect fair competition in global shipping and shipbuilding.
China has rapidly risen to become the world’s top shipbuilder, producing over 1,000 commercial vessels last year compared to fewer than 10 in the U.S. The tariffs are seen as a strategic attempt by Washington to offset that imbalance, especially given China’s dual-use commercial and military shipyards.
New fee structure and rising costs
China’s new port fees will start at 400 yuan ($56.13) per net metric ton on Tuesday and will rise gradually:
- 640 yuan ($89.81) starting April 17, 2026
- 880 yuan ($123.52) starting April 17, 2027
- 1,120 yuan ($157.16) starting April 17, 2028
Joe Kramek, CEO of the World Shipping Association, warned the new levies from both sides “add further complexity and cost” to global supply chains, potentially harming exporters and consumers at a time when trade is already under strain.
