Following the imposition of additional tariffs, the unpredictable Trump administration has taken another significant step. According to foreign media reports, the U.S. Trade Representative (USTR) has proposed imposing port fees of up to $1.5 million on Chinese-made vessels entering U.S. ports. This move could result in substantial new port service fees for Chinese ship operators or those who have ordered Chinese-built ships.
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Several logistics service providers have indicated that there is no immediate impact at present. However, industry experts warn that if this policy is implemented, the global shipping supply chain could be affected, leading to inevitable increases in shipping costs and potential disruptions to the cross-border e-commerce industry.
1. U.S. Plans to Impose Fees on Chinese Vessels
According to Reuters, the U.S. Trade Representative (USTR) has proposed charging Chinese-made vessels entering U.S. ports up to $1.5 million as part of an investigation into China’s growing “dominance” in global shipbuilding, maritime, and logistics sectors.
The proposed new shipping service fees are as follows:
- Fees for Chinese Shipping Operators: For Chinese ship operators providing international shipping services, each time a vessel enters a U.S. port:
- (a) A maximum of $1 million per vessel per entry; or
- (b) A maximum of $1,000 per net ton of the vessel.
- Fees for Operators with Chinese-Built Vessels: When a Chinese-built vessel enters a U.S. port, the operator will be charged for international shipping services provided by that vessel:
- (a) Up to $1.5 million;
- (b) Based on the proportion of Chinese-built vessels in the operator’s fleet: If 50% or more of the fleet is Chinese-built, up to $1 million per vessel per entry; if between 25% and 50%, up to $750,000; if less than 25%, up to $500,000;
- (c) If 25% or more of the fleet is Chinese-built, an additional $1 million per vessel per entry.
- Fees for Operators with Expected Chinese Vessel Orders: Based on the proportion of vessels ordered from Chinese shipyards:
- (a) If 50% or more of the vessels ordered or expected to be delivered within 24 months are from Chinese shipyards, up to $1 million per vessel per entry; if between 25% and 50%, up to $750,000; if less than 25%, up to $500,000;
- (b) If 25% or more of the total vessels ordered or expected to be delivered within 24 months are from Chinese shipyards, an additional $1 million per vessel per entry.
- Fee Reductions for Using U.S.-Built Vessels: For operators using U.S.-built vessels to provide international shipping services, up to $1 million per vessel per entry can be refunded on a calendar year basis.
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2. Sellers Face Rising Logistics Costs
Regarding the proposed high service fees on Chinese vessels, multiple logistics service providers contacted by Hugo Cross-Border have stated that they are not currently affected, as the policy is still in the proposal stage. Similar to the previous cancellation of the T86 policy, the Trump administration may not be fully prepared to implement this measure.
If the proposal to impose shipping service fees is passed, cross-border sellers could face rising logistics costs. Shipping companies may pass these costs onto customers, forcing sellers to bear higher freight costs and squeezing profit margins.
A logistics industry insider noted that if the new shipping policy is implemented, shipping costs could rise significantly. The inspection rate for Chinese vessels might increase, and inspection fees could rise from $1,000 per container to $5,000-$6,000. This would increase both costs and risks for sellers.
“In response to such situations, our main strategies are: 1. Reduce reliance on Chinese vessels and use more foreign shipping lines. 2. For agents focusing on the U.S. market, sign long-term agreements with shipping companies to stabilize freight fluctuations. 3. Establish transit warehouses in Mexico or Canada. 4. Combine air/express shipping methods to reduce reliance on sea freight. Cost increases will depend on how much shipping companies raise their fees. Using foreign shipping lines will also lead to cost increases, as the supply chain is interconnected,” the insider explained.
Some sellers believe that if the U.S. enforces this policy, initial capacity shortages could lead to tighter space availability and longer shipping times, affecting restocking speed and inventory management. To cope with shipping uncertainties, some sellers may shift to pre-stocking goods in U.S. warehouses (e.g., FBA), but this would increase storage costs and capital占用.
Recent data shows a downward trend in overall shipping costs. The latest Shanghai Containerized Freight Index (SCFI) released by the Shanghai Shipping Exchange indicates that the index has fallen for six consecutive weeks, dropping from 1,758.82 points to 1,595.08 points. As of February 21, freight rates from Shanghai to the U.S. West Coast and East Coast were $2,907/FEU and $3,954/FEU, down 18.0% and 18.1%, respectively.
A logistics expert pointed out that whether Trump’s new shipping policy will lead to higher shipping prices remains unclear, as the policy has not been finalized. However, historically, shipping companies tend to raise prices in April, May, and June due to increased market demand.
The U.S. Trade Representative (USTR) is currently seeking public comments on the proposed plan, with a deadline of March 24, and will hold a public hearing on the same day. Whether the plan will be implemented ultimately depends on President Trump’s decision.
Previously, a spokesperson for China’s Ministry of Commerce responded to the U.S. proposed restrictions on China’s maritime, logistics, and shipbuilding sectors, stating that the U.S. Section 301 tariffs have already been ruled by the WTO as violating trade rules and have faced opposition from many WTO members. The spokesperson emphasized that the U.S. measures are politically motivated and harmful to both sides, as they would increase shipping costs, raise U.S. inflation pressure, reduce the global competitiveness of U.S. goods, and harm the interests of U.S. ports, terminal operators, and workers. China urges the U.S. to respect facts and multilateral rules and to cease its erroneous practices. China will closely monitor U.S. actions and take necessary measures to safeguard its legitimate rights and interests.
Trump’s New Shipping Policy: Rising Costs for Sellers and Global Supply Chain Impact
Discover how Trump’s proposed shipping fees on Chinese vessels could increase logistics costs for cross-border sellers, disrupt global supply chains, and impact the e-commerce industry. Learn strategies to mitigate rising expenses.
Trump shipping policy, rising logistics costs, cross-border e-commerce, Chinese vessels, U.S. port fees, shipping industry, supply chain disruption, seller strategies, global trade.
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