“Freight Fee Warfare”: The U.S. Imposes Port Charges on Chinese-Linked Vessels — A Shipping Clash Unfolds

On October 2025, the U.S. Customs and Border Protection (CBP) formally issued CSMS #66427144, activating a new regime to impose fees on Chinese-owned, operated, or built vessels. This announcement draws on a Section 301 investigation notice published on April 17, 2025, and its June 12 modifications, setting up Annexes I, II, and III with new duties on ships tied to China, as well as foreign-built car carriers. Notably, LNG carriers (Class 132) are explicitly exempt from these fees.

Under this scheme, vessel operators—not CBP—bear the responsibility of determining whether fees apply. Fees must be paid before a ship’s first arrival from abroad at a U.S. port. Ships lacking proof of payment may be denied cargo operations or release until the fee is verified. The guidance strongly recommends starting payment at least three business days before arrival. Payment is permitted only through the U.S. Treasury’s Pay.gov platform, not at U.S. ports, and must be matched via the vessel entry control system (VECS). If matching fails, the operator may use the Pay.gov confirmation email as proof.

The fee regime is structured as follows: Annex I imposes $50/ton for vessels owned or operated by Chinese entities; Annex II imposes $18/ton or $120 per container (whichever is higher) for Chinese-built vessels; Annex III charges $14/ton for car carriers and ro-ro vessels.

This policy sweeping across the shipping world threatens to catch nearly all major players. Many of the world’s new ships are built in China, which means even non–Chinese owners could be exposed. Analysts estimate the top ten shipping lines could face up to $3.2 billion in added annual costs, with COSCO/OOCL bearing around $1.53 billion of that burden. Other carriers such as Maersk and Hapag-Lloyd face lighter exposures due to fleet composition, while some East Asian lines may escape largely unscathed.

In response, China has readied its countermeasures. In September, the Chinese executive branch revised its International Maritime Regulations, empowering the government to retaliate against foreign discriminatory measures—such as charging foreign ports for vessels or denying access. That legal foundation underpins later announcements that China will impose reciprocal port fees on U.S.-linked vessels docking in Chinese ports. Starting October 14, U.S.-owned/operated/built or flagged ships will pay ¥400/ton (approx. $56), gradually rising in phased increments until reaching ¥1,120/ton (~$157) by 2028. Each vessel is capped at five fee-incurring calls per year.

Industry voices in China have condemned the U.S. move as blatantly discriminatory and damaging to international maritime order, predicting ripple effects that will raise China-U.S. ocean trade costs by an effective 4 percent margin—akin to a hidden tariff burden. They warn of port congestion, route reconfigurations, logistics bottlenecks, and fallout in sectors like agriculture, energy, and chemical export chains.