USTR targets China’s maritime dominance, announces new fee structure

The United States Trade Representative (USTR) has announced a comprehensive plan to reduce China's dominance in the maritime sector and bolster American shipbuilding. The plan includes a targeted fee structure on Chinese vessels and operators to enhance US economic security and ensure the free flow of commerce, according to US Trade Representative, Ambassador Jamieson Greer.

The action plan, developed after a year-long investigation and public consultation, will be implemented in two phases. The first phase includes a 180-day grace period where no fees will be charged. After this period, fees will be levied on Chinese vessel owners and operators based on net tonnage per US voyage, starting at $50 per net ton and increasing to $140 by 2028.

Fees will also apply to operators using Chinese-built vessels, regardless of nationality, at a lower rate. Operators of China-built ships will be charged $18 per net ton or $120 per discharged container, increasing to $33 per net ton or $250 per container by 2028. 

A phased service fee will target foreign-built vehicle carriers based on Car Equivalent Unit (CEU) capacity, set at $150 per CEU after the grace period.

Exemptions have been established for US-owned vessels, those in US Maritime Administration programs, smaller vessels, and certain specialised export vessels. The fees will be applied only at the first US port of entry per rotation. The final plan excludes previously proposed measures such as high flat per port entry fees for operators with significant shares of Chinese-built vessels.

Phase two will focus on the LNG sector, mandating a portion of US LNG exports to use US-built vessels starting April 17, 2028, with a 22-year phase-in period. The revised plan includes a fee assessment system based on port rotation to protect smaller US ports, alongside a fee remission pathway for operators committing to purchase US-built vessels, aiming to stimulate domestic shipbuilding investment.

In addition, the USTR has proposed tariffs of up to 100 percent on ship-to-shore cranes made in China or by companies influenced by Chinese nationals. This decision follows an investigation prompted by a petition from five national labor unions, which concluded that China's practices in the maritime sector displace foreign firms and create dependencies on China.