Introduction Home / News / Club News / U.S. Port Fees on Chinese-Built Vessels: Legal Challenges and Market Disruptions Club News U.S. Port Fees on Chinese-Built Vessels: Legal Challenges and Market Disruptions 21 March, 2025 Introduction The U.S. government is considering unprecedented port fees on vessels with Chinese ties, imposing charges ranging from $500,000 to $1.5 million per port call on Chinese-built ships and fleets with a Chinese nexus. These measures are the alleged remedies to an investigation which found that China’s dominance in shipbuilding and maritime logistics violated U.S. policy. These fees could have far-reaching legal, economic, and geopolitical consequences. While the regulatory framework is still developing, the proposed fees could lead to legal disputes, disrupt charter rates, impact vessel asset values, and shift global trade flows. Stakeholders across the shipping industry should carefully assess the implications of these measures and prepare for implementation of these measures. Legal and Procedural Background The U.S. Trade Representative (USTR) launched an investigation in 2024 into alleged unfair trade practices by Chinese shipyards. By January 2025, the USTR determined that these practices were unfair and “actionable” under Section 301 of the Trade Act of 1974, which grants the President broad authority to impose trade restrictions in response to unfair foreign practices. Historically, such actions have targeted specific products or materials, but this is the first time a measure of this scale has been proposed against an entire industry. The current proposals include a $1.5 million per entry fee for Chinese-built vessels calling at U.S. ports and a $1 million per entry fee for vessels owned by Chinese maritime operators. Additionally, similar fees could be imposed on operators that have placed orders with Chinese shipyards over the next two years. The proposal also includes a phased increase in U.S.-flag shipping requirements, mand