Shipping Groups Warn US Fees on Chinese Ships May Backfire

BIMCO and WSC warned that the US proposed fees on Chinese-origin vessels will harm the US economy. File Image / Pixabay

With the US proposing fees on Chinese-built or Chinese-operated vessels entering its ports, several shipping organisations and associations have raised concerns about the potential economic and trade consequences.

BIMCO and the World Shipping Council (WSC) warn that these measures could disrupt supply chains, raise costs for businesses and consumers in the US, and trigger retaliatory actions from China.

They argue that such policies could weaken US trade competitiveness rather than achieve their intended goals.

Last month, the US Trade Representative (USTR) proposed service fees of up to $1.5 million on vessels of Chinese origin calling at US ports. The move aims to curb China's dominance in shipbuilding and support the US shipbuilding industry.

BIMCO, in a letter to the USTR, warned that implementing these fees would make US trade less efficient and more costly.

Some operators may avoid Chinese-built ships, while others may shift their focus to non-U.S. markets. Reduced competition could drive up shipping costs, impacting the US more than the rest of the world.

WSC estimates the fees could add $600–800 per container to shipping costs, with US exporters—especially farmers—bearing the brunt.

With high fees per call, container ships may reduce calls at smaller or mid-sized ports in the US, it said.

The USTR is inviting public comments on its proposed measures against Chinese-built vessels and maritime operators. A public hearing is scheduled for March 24 as part of the review process.