In a bold move to counter China’s growing dominance in global shipping, the US is proposing hefty port fees for Chinese-built vessels. With fees reaching up to $1.5 million per ship, this could be the start of a new era in maritime trade wars.

The Battle for the Seas: US vs. China

The Office of the United States Trade Representative (USTR) has unveiled a groundbreaking proposal to impose port entrance fees on Chinese-built ships entering US waters. The move is part of a broader strategy to curb China’s overwhelming control over the global shipping and shipbuilding industries.

According to USTR, China now accounts for over 50% of global shipbuilding tonnage—a staggering rise from less than 5% in 1999. Meanwhile, the US is building fewer than five ships annually, compared to China’s 1,700. This imbalance has raised alarms about economic dependency and national security.

Ambassador Katherine Tai, the US’s top trade negotiator, has called China’s dominance “unreasonable,” arguing that it stifles competition and undermines US commerce. The proposed fees aim to level the playing field and incentivize the use of US-built vessels.

The $1.5M Fee Breakdown

The USTR’s proposal outlines a tiered fee structure targeting Chinese ships and operators:
– $1.5 million per ship for fleets entirely composed of Chinese-built vessels.
– $1 million per ship for fleets with 50% or more Chinese-built vessels.
– $1,000 per net ton for ships owned by Chinese operators.

But there’s a twist: the fees could be refunded for US-built vessels engaged in international trade, offering a potential lifeline to America’s struggling shipbuilding industry.

The proposal also includes measures to restrict access to China’s National Transportation and Logistics Public Information Platform (LOGINK), citing concerns over data security and China’s growing influence in global logistics.

A Maritime Cold War?

This isn’t the first time the US has taken aim at China’s maritime ambitions. Last month, COSCO Shipping Holdings, a Chinese state-owned giant, was added to the US Department of Defense’s sanctions list for alleged ties to China’s military.

Meanwhile, US lawmakers are pushing for the SHIPS for America Act, a legislative effort to revive the nation’s commercial maritime industry. With only 80 US-flagged ships engaged in international trade—compared to China’s 5,500—the stakes couldn’t be higher.

The act seeks to rebuild America’s shipyard base, fund domestic vessel production, and address the critical shortage of skilled mariners and shipyard workers.