The United States Trade Representative (USTR) recently announced that port fees for Chinese ships have been suspended for two months and is accepting public comments until October 30. This decision comes as officials from both countries are negotiating broader trade issues.
Details of Port Fees
The new fees were set to take effect on November 10, but with the suspension of these fees, their implementation has been postponed to January 9, unless another agreement is reached. This temporary suspension means that neither party will bear responsibility or costs for transportation services or tariffs related to products during this extended period.
The United States initially targeted fees for ships owned by China, built in China, or operated by them in October 2025. This action prompted China to impose similar tariffs on US-related ships entering Chinese ports.
Investigations and Economic Implications
The USTR's initial proposal was published in the Federal Register in February 2025, which included service fees of up to $1.5 million for each entry into a US port for ships built in China and up to $1 million for operators based in China. This action followed an investigation under Section 301 that found China's practices, policies, and procedures to be unfair and putting pressure on US trade.
Section 301 is a provision of the Trade Act of 1974 that allows the United States to address foreign companies' trade practices deemed unfair. Now, traders in the liquid transportation market are closely monitoring the situation and are taking a cautious approach before making serious decisions.
Most liquid tankers are built in China, Japan, and South Korea. Actions taken against container ships could also impact chemical markets, as while most chemicals are liquid and transported in tankers, container ships carry polymers like polyethylene (PE) and polypropylene (PP) in pellet form. These ships also transport liquid chemicals in isotanks.
