U.S. and China impose rival port fees

The United States and China have started imposing reciprocal port fees on vessels linked to the other country, marking a new front in their economic confrontation and putting pressure on global shipping networks. Under the U.S. measure, ships built, owned or operated by Chinese entities face additional charges when calling at U.S. ports; China’s matching move targets vessels built in, flagged by, or significantly owned by U.S. interests while exempting Chinese-built ships and vessels used for repairs. The fees follow U.S. findings that China has used unfair policies to gain an outsized position in maritime logistics, shipbuilding and port services, and are intended to weaken that dominance and bolster domestic shipbuilding.

Analysts say the levies could impose heavy costs on major carriers, potentially altering commercial patterns. State-owned COSCO is expected to take a particularly large hit, with estimates suggesting it could bear nearly half of an anticipated $3.2 billion burden in the container sector by 2026. Faced with the new charges, some carriers are absorbing costs to avoid immediate price rises for shippers: COSCO and its subsidiary OOCL have indicated they will shoulder U.S. port fees rather than pass them directly to customers, a move that could compress margins. Other operators are reallocating vessels, reducing deployment of Chinese-built ships on U.S. services or rerouting calls to limit exposure.

The measures are designed to be phased and may cap the number of voyages subject to levies in a given year, but even limited application can reshape routing decisions and terminal calls. Shipping lines may respond by consolidating services, redirecting cargo to alternative ports, or renegotiating contracts—actions that risk increasing freight rates and causing delays as networks adjust.

Observers warn that beyond the immediate financial impact on carriers and ports, the tariff-like charges could distort global freight flows and amplify supply-chain volatility. Importers and exporters may face higher logistics costs and uncertain transit times, particularly on Asia‑U.S. lanes. The tit‑for‑tat escalation also highlights how geopolitical rivalry is moving from tariffs and investment controls into operational choke points such as ports, shipyards and critical logistics services.

Industry groups and analysts are watching for secondary effects: shifts in shipbuilding demand, reconfiguration of liner alliances, and potential moves by neutral third‑country ports to capture diverted traffic.