Global Trade Tensions Escalate as U.S. and China Impose New Port Fees on Shipping Industry
Global shipping has become the latest battleground in the intensifying trade war between the United States and China. Both nations have begun imposing additional port fees on ocean carriers transporting goods ranging from crude oil to consumer toys — a move analysts warn could distort global freight flows and disrupt international supply chains.
The tit-for-tat measures come amid heightened trade tensions following China’s decision to expand export controls on rare earth minerals and U.S. President Donald Trump’s threat to raise tariffs on Chinese imports to triple-digit levels. Although both sides have recently emphasized their willingness to negotiate, the new maritime levies indicate that economic confrontation remains very much alive.
China Introduces Port Fees on U.S.-Linked Vessels
China announced it has started collecting “special charges” on U.S.-owned, operated, built, or flagged vessels entering Chinese ports. However, Beijing clarified that ships constructed in China or entering local shipyards for repairs would be exempt from the new levies.
According to China’s state broadcaster CCTV, the fees will apply at the first port of entry for a single voyage or up to the first five voyages within a one-year period. The structure closely mirrors the United States’ own fee policy, reflecting what analysts call a “tit-for-tat symmetry” that risks locking both economies into a spiral of maritime taxation.
“Such actions could distort global freight flows,” said Xclusiv Shipbrokers, an Athens-based maritime analytics firm. “The symmetry of these tariffs may create inefficiencies across the shipping industry and lead to rerouting or higher costs globally.”
U.S. Pushes Back Against Chinese Maritime Dominance
Earlier this year, the Trump administration revealed plans to impose similar fees on China-linked ships in an effort to curb Beijing’s influence over global shipbuilding, logistics, and maritime trade. The move followed an investigation initiated during the Biden administration, which found that China’s maritime policies created unfair advantages and undermined competition.
In response, China retaliated almost immediately, introducing identical port charges on U.S.-connected vessels on the same day the U.S. measures came into effect.
Independent dry bulk shipping analyst Ed Finley-Richardson noted that companies are scrambling to adapt. “We’re seeing U.S. shipowners quietly attempt to sell cargo mid-voyage or reroute vessels to avoid the new Chinese fees,” he said. “It’s a chaotic situation where workarounds are being tested with mixed success.”
Who Gets Hit Hardest?
Analysts estimate that China’s state-owned shipping giant COSCO will be hit the hardest by the U.S. port fees, potentially absorbing nearly half of the estimated $3.2 billion in additional costs expected by 2026.
Major international carriers — including Maersk, Hapag-Lloyd, and CMA CGM — have already moved to limit their exposure by reallocating Chinese-linked vessels out of U.S. shipping lanes. Following pushback from energy, agricultural, and maritime sectors, U.S. trade officials reduced the originally proposed fee rates and introduced several exemptions to mitigate domestic impact.
The U.S. Trade Representative’s Office has not commented on the current escalation.
China’s Ministry of Commerce responded firmly, stating, “If the U.S. chooses confrontation, China will see it through to the end. If it chooses dialogue, China’s door remains open.”
New Sanctions and Investigations Add to Tensions
Adding further strain, Beijing announced sanctions on five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean. China accused these entities of assisting the U.S. investigation into its trade practices.
Hanwha — which operates Philly Shipyard in the United States and is involved in U.S. Navy ship repair projects — confirmed awareness of the sanctions and said it was assessing potential impacts. The company’s shares dropped nearly 6 percent after the news broke.
In addition, China launched an internal investigation into how the U.S. maritime probe has affected its shipbuilding and logistics sectors.
Despite these developments, some experts believe the fallout may remain manageable. A Shanghai-based trade consultant told Reuters, “We can’t stop shipping altogether. Trade is already strained, but businesses are finding ways to adapt.”
U.S. Offers Temporary Relief for Certain Carriers
In a small gesture of flexibility, Washington announced a temporary exemption for long-term charterers of China-operated vessels transporting U.S. ethane and liquefied petroleum gas (LPG). The exemption will defer port fees for those vessels until December 10.
Even so, ship-tracking firm Vortexa reported that at least 45 very large gas carriers (VLGCs) transporting LPG are subject to China’s new charges — roughly 11 percent of the global fleet.
Similarly, Clarksons Research estimated that China’s new port fees could impact oil tankers representing 15 percent of global capacity, while financial analyst Omar Nokta of Jefferies projected that 13 percent of crude tankers and 11 percent of container ships worldwide would feel the effects.
A Growing Strain on Global Trade
The mutual imposition of maritime fees underscores how the U.S.-China trade rivalry has expanded beyond traditional tariffs into critical infrastructure sectors such as energy, logistics, and transportation.
Analysts warn that continued escalation could drive up shipping costs globally, disrupt key energy routes, and ultimately lead to higher prices for consumers. Industries relying heavily on maritime trade — from agriculture to retail — may experience longer delivery times and thinner profit margins.
As both nations balance between confrontation and diplomacy, traders and investors remain on edge. The world’s two largest economies have shown that even the world’s oceans are not immune to the tides of their geopolitical rivalry.