News / New USTR port fees threaten shipping and global supply chains, says Cosco

With the US Trade Representative (USTR) set to impose port fees on Chinese shipping lines and on Chinese-built vessels, Cosco could feel compelled to replace its box ships on transpacific routes by taking slots on vessels operated by fellow Ocean Alliance partners CMA CGM and Evergreen.

The USTR 301 action announced on Thursday means that, from October, Chinese-built ships calling at US ports will be charged $18 per net vessel tonnage, or $120 per container discharged, whichever is higher. By April 2028, the charge will have risen incrementally to either $33 per net tonnage of the vessel, or $250 per container discharged.

And, from October, Chinese lines must pay an additional $50 per net tonnage, regardless of where the vessels were built, which will gradually increase to $140 by April 2028, .

Box ships smaller than 4,000 teu and those on voyages of less than 2,000 nautical miles are exempt from the charges. This is likely to benefit shortsea operators in the Caribbean/South American routes and operators of US-flagged ships on the MSP/VISA program, giving an advantage to operators such as CMA CGM.

Only 20% of the containerships currently calling at US ports are affected, and these are expected to be swapped with exempt ships over the next six months.

Linerlytica today reported that all mainline operators had enough ships to replace all their China-built vessels on transpacific routes without disrupting their operations.

The consultancy however, noted that the USTR exemptions were open to debate, as the hefty 145% tariffs imposed by US president Donald Trump on imports from China had already drastically reduced cargo volumes and transpacific sailings.

Linerlytica said: “Blanked sailings are in any case rising on transpacific routes as carriers grapple with reduced bookings in China, with the tariff war in full swing.”

On Friday, the Shanghai Containerised Freight Index showed Shanghai-US west coast freight rates had lost about 5% from the previous week, to average $2,103 per 40ft, although Shanghai-US east coast rates stayed almost unchanged, at $3,251 per 40ft.

China Cosco Shipping Corporation yesterday criticised the USTR’s “discrimination” against Chinese ship operators, saying: “We firmly oppose the accusations and the subsequent measures.

“Such measures not only distort fair competition and impede the normal functioning of the global shipping industry, but also threaten its stable and sustainable development.

“Ultimately, these actions risk undermining the security, resilience, and orderly operation of global industrial and supply chains,” it added.