Chinese-Built Ship Fees Could Cause Major U.S. Port Congestion, Analysts Warn

Maritime analysts are sounding the alarm that the Trump Administration’s proposed fees on China-built container ships could severely disrupt US supply chains, potentially causing port congestion, increased freight rates, and shifts in global trade patterns.

The United States Trade Representative (USTR) this week announced a proposal to impose a $1 million fee every time a vessel operated by a Chinese carrier enters a U.S. port and up to $1.5 million per port call for Chinese-built ships regardless of the carrier’s nationality. Additional substantial fees are threatened for carriers based on the percentage of new ships on order being built in China.

Peter Sand, Chief Analyst at Xeneta, warns that ocean carriers will likely take evasive action to avoid these fees by calling at fewer U.S. ports, which could trigger major congestion and delays across American maritime gateways.

“We saw a similar situation last year when carriers cut port calls in Asia and handled more containers per call at Singapore to offset the impact of the Red Sea crisis,” Sand noted. “The intentions were good, but the severe congestion caused by handl…