14 October 2025 — Shanghai / Washington

Scope of Application

Under the new rules, the fee applies to vessels falling within any of the following categories:

  • Owned or operated by U.S. enterprises, organizations, or individuals
  • Owned or operated by entities with 25% or more U.S. equity or voting control
  • Flying the U.S. flag
  • Built in the United States

However, in an implementation measure issued at the moment of enforcement, Beijing exempted Chinese-built vessels from the new fees, even if they are U.S.-owned, operated, or flagged. The exemption also applies to vessels entering Chinese shipyards for repair a move widely seen as an attempt to protect the competitiveness of China’s domestic shipbuilding sector.

Fee Structure

The Special Port Service Fee will be charged per voyage at the first Chinese port of call, with payment capped at five voyages per vessel per calendar year. The phased rates are as follows:

  1. From 14 October 2025: RMB 400 per net ton
  2. From 17 April 2026: RMB 640 per net ton
  3. From 17 April 2027: RMB 880 per net ton
  4. From 17 April 2028: RMB 1,120 per net ton

At current exchange rates, the initial rate equates to roughly US $55 per net ton, rising to over US $150 per net ton by 2028.

Legal and Political Context

The measure derives its authority from China’s Regulations on International Maritime Transportation, specifically Article 48, which permits reciprocal actions in response to “discriminatory maritime measures” imposed by foreign governments. Chinese officials have characterized the U.S. Section 301 port fees as violating the 2003 China–U.S. Maritime Agreement, and have framed their countermeasure as both lawful and proportionate.

Market Reaction

Reaction among U.S.-listed shipowners has ranged from alarm to resignation. Some operators accelerated voyages to arrive in China before enforcement, while others have been rushing to decipher complex compliance forms and ownership definitions. Confusion has arisen over whether dual nationals, shareholding structures, or chartered-in vessels fall within the 25% ownership test.

Bulk carriers, which account for a large share of U.S.–China trade in dry commodities, are expected to feel the greatest impact. Tanker and LPG operators, whose exposure to Chinese ports is smaller, may experience only marginal disruption.

Operational Implications for U.S. Owners

For shipowners and operators subject to U.S. beneficial control, the new fees represent a significant potential cost exposure and compliance burden. Beyond the direct financial implications, there are secondary effects to consider:

  • Voyage Economics: Additional port costs could materially affect TCE returns on China-bound voyages.
  • Contractual Allocation: Charterparty clauses will need to specify who bears the cost of the Special Port Service Fee and how exposure is calculated.
  • Ownership Structures: The 25% U.S.-control threshold introduces incentives for corporate restructuring or director nationality adjustments to mitigate exposure.
  • Compliance Documentation: Operators should be prepared to provide ownership declarations and supporting documentation to Chinese port authorities.

Recommendations for U.S. Shipowners

  1. Assess Fleet Exposure: Identify vessels that may fall within the definition of “U.S.-linked” under the 25% control rule.
  2. Review Charterparties: Include clauses addressing which party bears responsibility for the Chinese Special Port Service Fee.
  3. Monitor Implementation Guidelines: China’s Ministry of Transport is expected to release detailed procedures in the coming weeks.
  4. Coordinate Compliance Early: Ensure local agents and masters have the correct documentation prepared before port arrival to prevent clearance delays.
  5. Stay Alert for Adjustments: Beijing has already issued exemptions to soften the blow; further clarifications or diplomatic negotiations may follow.

While the measure is rooted in reciprocal trade policy, its operational ramifications for U.S.-linked shipowners are real and immediate. Navigating this new layer of regulatory and cost complexity will require close coordination between shipowners, charterers, and port agents and ongoing monitoring of how China’s enforcement practices evolve.