China Imposes Special Port Fees on US-Linked Vessels in Retaliatory Move

Introduction: A New Front in the US-China Trade Dispute

On October 14, 2025, China’s Ministry of Transport implemented a new “Special
Port Service Fee” targeting vessels with links to the United States, opening a new
front in the ongoing trade dispute between the two economic superpowers. The
move, a direct retaliation against the United States Trade Representative’s (USTR)

Article 301 tariffs, introduces a new layer of complexity and cost for the global
shipping industry and has significant implications for international law firms
advising clients involved in US-China trade.

The new fee, which is set at RMB 400 per net ton, applies to all US-linked vessels
calling at Chinese ports and is scheduled to increase annually through 2028. This
measure is a clear signal of Beijing’s willingness to use its control over critical
infrastructure to counter what it perceives as unfair trade practices. This article
provides an in-depth analysis of the new port fees, their legal basis, and their
potential impact on the shipping industry, and offers strategic guidance for
businesses navigating this new and challenging regulatory environment.

The Special Port Service Fee: A Targeted Measure

The Special Port Service Fee is a targeted measure aimed squarely at the US
shipping industry. The fee applies to any vessel that is majority-owned or operated
by a US entity, as well as vessels flagged in the United States. The broad definition
of “US-linked” is intended to capture a wide range of vessels and to maximize the
impact of the measure.

The fee is to be collected by the local maritime safety administration at each
Chinese port and is payable upon the vessel’s arrival. Failure to pay the fee will
result in the vessel being denied entry to the port or being detained until the fee is
paid. The annual increases in the fee are designed to escalate the pressure on the
US shipping industry over time.

Legal Basis and International Law Implications

China has justified the new port fees as a necessary and proportionate response to
the USTR’s Article 301 tariffs, which it argues are a violation of World Trade
Organization (WTO) rules. Beijing maintains that the fees are consistent with its
rights under international law to take countermeasures in response to another
state’s illegal acts.

However, the legality of the fees under international law is likely to be contested.
The United States may argue that the fees are a violation of the principle of freedom
of navigation and that they constitute a discriminatory measure that unfairly targets
US-flagged and US-owned vessels. The dispute could ultimately be brought before
the WTO or another international tribunal for resolution.

Impact on the Shipping Industry and Global Trade

The new port fees will have a significant impact on the shipping industry and global
trade. The increased cost of calling at Chinese ports will be borne by shipping
companies, who are likely to pass these costs on to their customers in the form of
higher freight rates. This will increase the cost of goods traded between the United
States and China, further exacerbating the inflationary pressures that are already
affecting the global economy.

The fees may also lead to a rerouting of trade flows, as shipping companies seek to
avoid calling at Chinese ports. This could benefit other ports in the region, such as
those in South Korea, Singapore, and Vietnam, but it would also disrupt existing
supply chains and create new logistical challenges.

Strategic Guidance for Law Firms and Their Clients

In light of these new port fees, law firms should advise their clients in the shipping
and logistics sectors to:

Review Charter Parties and Contracts of Affreightment: Companies should
review their existing contracts to determine who is responsible for paying the
new fees and to assess their rights and obligations in the event of delays or
disruptions caused by the fees.

Explore Alternative Routes and Ports: Shippers and carriers should explore
alternative routes and ports to avoid the new fees. This may involve
transshipping goods through other countries or using different modes of
transport.

Monitor Political and Legal Developments: The situation is fluid, and further
retaliatory measures from both sides are possible. Companies should closely
monitor political and legal developments and be prepared to adapt their
strategies accordingly.

Consider Dispute Resolution Mechanisms: In the event of disputes arising
from the new fees, companies should be prepared to use all available dispute
resolution mechanisms, including negotiation, mediation, and arbitration.

Conclusion: A New Era of Uncertainty for Global
Shipping

The imposition of special port fees on US-linked vessels marks a new and uncertain
chapter in the US-China trade dispute. The move has the potential to significantly
disrupt global shipping and trade, and it highlights the growing risks for businesses
operating in a world of increasing geopolitical competition. By taking a proactive
and strategic approach, law firms and their clients can navigate these challenges
and mitigate their risks in this new era of uncertainty.