US Plan to Impose Port Docking Fees on China May Backfire

2025-03-21

Shipping analysts warn that the United States' proposed port docking fees on Chinese ships could negatively impact its economy and disrupt shipping capacity between the two countries.

In late February, the US trade Representative suggested fees of up to $1.5 million for Chinese-operated vessels, prompting China to call for an immediate halt to this action. Authorities argue that such fees will raise global shipping costs and exacerbate inflation in the US, with additional expenses likely being passed on to consumers. 

Zhou Dequan, chief economist at the Shanghai International Shipping Institute, emphasised that this could also affect not only Chinese shipping companies like China COSCO Shipping Corp but also large global operators, including CMA CGM Group, Hapag-Lloyd AG, and Maersk Line. The World Shipping Council estimates that these port fees might add $600 to $800 per container, equating to an additional $30 billion in costs for US consumers annually if implemented. A report from Ningbo Customs suggests that this could decrease direct shipping capacity between China and the US, favouring alternative routes and possibly concentrating shipments at significant ports like Los Angeles and Long Beach.

Soren Toft, CEO of MSC Group, noted potential adjustments in shipping routes to avoid these fees, indicating that a typical journey could incur fees totalling around $4 million. Xu Kai from Shanghai Maritime University remarked that increased fees could accelerate global logistics diversification, with Southeast Asia, India, and Mexico becoming new hubs. 

Overall, changes in US tariff policies have already reduced exports from China and increased market uncertainty due to Chinese exporters' reluctance to ship to the US.