Freight News, Sea


Trump ship tariffs sets cat among the pigeons – updated

[ February 26, 2025   //   ]

US plans to impose port call fees of $500,000-$1.5m on Chinese carriers, vessels or carriers with Chinese vessels in their fleet or orderbook could disrupt the global supply chain, warns the Freightos online marketplace.

A comment period on the proposal is due to end with a hearing on 24 March after which the US Trade Representative (USTR) will deliver recommendations to the president.

Freightos says that, if implemented, carriers can be expected to pass on costs of up to several hundred dollars per container to shippers. Others may divert to Canada or Mexico, but the overall impact would be felt in cost increases, it said.

The Trump administration has ordered government agencies to research possible steps to prevent Chinese investment in US industries, including ports and shipping, and as part of this the commerce secretary has proposed that all foreign vessels pay a US port tax.

The action would also provide refunds to carriers using US vessels and sets targets for the share of US exports that should be moved by US flagged vessels in the coming years.

The action is in fact based on the findings of Biden-era USTR research into China’s shipbuilding industry which were released in mid-January which concluded that state subsidies for shipbuilding and logistics in China had harmed US interests. China’s share of shipbuilding tonnage has grown from less than 5% in 1999 to 50% in 2023, and it now owns 19% of the world fleet.

The president also wants to implement a postponed 25% tariff on all Canadian and Mexican goods, due to come into force on 4 March.

Meanwhile, however, says Freightos, transpacific daily rates of about $4,000/FEU 40ft equivalent unit or 2 TEU) to the West Coast are 30% lower than early January but still $1,000/FEU higher than a year ago. Frontloading ahead of tariff hikes may be keeping prices up on this lane compared to Asia-Europe rates, which have fallen about 50% since January to less than $3,000/FEU and below their 2024 floor as this lane enters the post-Lunar New Year lull.

Xeneta chief analyst, Peter Sand, warned that the fees could have unintended consequences. He said: “Ocean container carriers will take action to avoid the fees, such as calling at fewer ports, which could cause major congestion and delays in the US.

 “We saw a similar situation last year when carriers cut port calls in Asia and handled more containers per call at Singapore in an effort to offset the impact of the Red Sea crisis and diversions around Africa. The intentions were good, but the severe congestion caused by handling more containers in Singapore rippled across global supply chains and saw average spot rates from the Far East to US East Coast spike more than 300%.

“Trump is weaponising trade against China, but you have to wonder if they truly understand the consequences of this policy because there is a high risk it will cause major disruption and make container shipping more cumbersome and expensive for US importers.”

Sand also stated shippers could also take action to avoid the fees by importing goods into the US via Mexico and Canada: “Shippers have been using Mexico and Canada as a back door into the US to avoid tariffs on imports from China. Trump has vowed to stop this trend by imposing tariffs of 25% on imports from Mexico and Canada and make using these nations as a backdoor less attractive.

“If shippers now face new port fees on top of the tariffs when importing directly into the US, it could change the situation again and fuel further growth in imports from China to Mexico and Canada. Ironically, Trump may be indirectly driving one of the very things he’s trying to guard against.”

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