News 07 May, 2025 USTR Action Against Chinese-Built, Operated and Owned vessels - Charter party Implications Erin Walton Assistant Corporate Director Members will be aware of the ‘Proposed Actions’ published by the Office of the U.S. Trade Representative, or USTR, in February 2025 that would have widespread ramifications for the shipping industry. Those proposals for substantial port fees followed an investigation commenced by the Biden administration into what it referred to as China’s dominance of maritime, logistics and shipbuilding sectors. Download PDF Following a period of consultation with industry that has resulted in many changes to those ‘Proposed Actions’, the USTR confirmed on 17 April 2025 that the following fees will be applied and phased in from 14 October 2025 to Chinese owned, operated and built vessels:- Phased Fees on Maritime Transport Services – Annex I A phased fee on Chinese vessel operators and vessel owners will apply. This fee, based on the net tonnage of the vessel, is assessed against any vessel with a Chinese operator or owned by an entity of China (as defined in Annex I). If a vessel makes multiple U.S. entries before transiting to a foreign destination, this fee is assessed per rotation or string of U.S. port calls. The fee will be set at $0 for the first 180 days, will then be set at $50/NT, and will increase incrementally over the next three years. The fee will be charged up to five times per year, per vessel. Phased Fees on Chinese-built vessels – Annex II This fee is based on the higher of (i) a fee based on the net tonnage of the vessel, or (ii) a fee based on per container. If a vessel makes multiple U.S. entries before transiting to a foreign destination, this fee is assessed per rotation or string of U.S. port calls. The fee will be set at $0 for the first 180 days and increases incrementally over the next three years (see Annex II). The fee that will apply is the higher of one based on the net tonnage of the vessel or per cont