China Levies $1.7M “Special Port Fee” On First U.S.-Linked Ship At Shanghai Port

China has begun charging a new “special port fee” on ships linked to the United States. The U.S.-flagged container ship Matson Waikiki, carrying 4,870 TEUs, docked at Shanghai Port on Tuesday at 6 p.m. local time.

With a net tonnage of 30,224, the ship is liable for a charge of about 12.09 million yuan (around $1.7 million), according to China’s recently published fee schedule. Chinese transport officials confirmed the vessel is subject to the new levy, though it remains unclear whether payment has been made.

The fee targets ships “linked to the United States” and is seen as China’s response to Washington’s recent trade restrictions. Experts say the move expands China’s ability to extend its countermeasures beyond tariffs and investment controls into shipping and logistics, potentially raising costs for U.S.-related trade flows through Chinese ports.

China has clarified that certain exemptions apply, including Chinese-built ships and empty vessels entering shipyards for repairs. The fee will be collected at the first port of entry on a single voyage or for the first five voyages within a year, with an annual billing cycle starting April 17.

Earlier this year, the U.S. announced plans to levy similar charges on China-linked vessels, arguing that China uses unfair trade practices to dominate global shipping and shipbuilding. In response, China imposed its own fees on U.S.-linked vessels effective immediately.

At the same time, Beijing also imposed sanctions on five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting a U.S. probe into Chinese trade practices. said it is assessing the impact after its shares dropped nearly 6%.

Analysts believe the new fees won’t majorly disrupt operations but will likely raise shipping costs, passed on through higher prices. Reports estimate that about 13% of crude oil tankers, 11% of container ships, and 15% of oil tankers could be affected globally.

China’s COSCO, one of the world’s largest shipping companies, could bear nearly half of the expected $3.2 billion cost from these fees by 2026. Despite this, COSCO’s shares rose over 2% after it announced a buyback of up to 1.5 billion yuan ($210 million) to support its market value.

References: investinglive, caixinglobal

Source: Maritime Shipping News