World Shipping Council urges constructive solutions following USTR port fee announcement

Liner body the World Shipping Council (WSC) has voiced serious concerns regarding the port fee regime on China-linked ships and foreign-built car carriers announced by the U.S. Trade Representative (USTR) last week, cautioning that the measures could undermine American trade, hurt U.S. producers, and weaken efforts to strengthen the nation’s maritime industry.

The USTR announced on 17 April that the new measures will be introduced in two phases as follows:

(1) In the first phase, after 180 days:

- Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years;

- Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years; and

- To incentivise U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

(2) The second phase actions will not take place for 3 years:

- To incentivise U.S.-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years.

In addition, USTR is seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President’s Maritime Executive Order.

“Revitalising America’s maritime sector is an important and widely shared goal - one that requires a long-term, legislative and industrial strategy,” commented Joe Kramek, President and CEO of the World Shipping Council. “We welcomed the vision outlined in the President’s Executive Order, which proposes targeted initiatives to strengthen U.S. shipbuilding, ports, and supply chain resilience. Unfortunately, the fee regime announced by USTR is a step in the wrong direction as it will raise prices for consumers, weaken U.S. trade and do little to revitalise the U.S. maritime industry.”

The World Shipping Council outlined several key concerns, namely:

  - Retroactive Port Fees: Applying fees to vessels that are already on the water offers no support for U.S. shipbuilding and, instead, risks harming American exporters — particularly farmers — at a time when global trade is facing significant strain. These backward-looking penalties disrupt long-term investment planning, introducing new costs and unpredictability for American businesses and consumers.

  - Fees Calculated on Net Tonnage: Structuring fees based on ship size — Net Tonnage (NT) — disproportionately penalises larger, more efficient vessels that deliver essential goods, including components used in U.S. production lines. Nearly half of all liner shipping imports to the U.S. are used directly in domestic production processes. Increasing the cost of these shipments will reverberate through the supply chain, raising production costs for American businesses and, ultimately, for consumers. It will also penalise U.S. ports, who have made significant investments to expand their capacity to attract and handle the largest container ships serving the trade. 

  - Fees on car carriers: Additionally, the USTR actions this week included a new and previously unannounced fee based on Car Equivalent Unit (CEU) capacity for almost every vehicle carrier in the world. This arbitrary action, targeting all foreign-built vessels, will further slow U.S. economic growth and raise automobile prices for American consumers, while doing little to encourage U.S maritime investment.

  - Legal and Strategic Concerns: WSC also flagged significant legal concerns, noting that the proposed fees appear to extend beyond the authority granted under U.S. trade law.

The WSC is urging the Administration to reconsider this counterproductive measure, which risks harming U.S. consumers, manufacturers, and farmers without delivering meaningful progress toward revitalising the U.S. maritime industry.

The World Shipping Council reaffirmed its commitment to working collaboratively with the Administration and industry stakeholders on solutions that can truly strengthen the U.S. maritime sector. Constructive pathways — such as targeted investment incentives, infrastructure improvements, and streamlined regulatory processes — can deliver lasting benefits without disrupting U.S. trade or raising costs for American producers and consumers.

The WSC added that is also important to recognise that the U.S. shipbuilding sector already faces significant constraints, including a backlog of military orders and ongoing labour shortages. Similarly, a shortage of trained and certified U.S. mariners limits the potential to expand U.S.-flag shipping, even if the regulatory environment was improved.

“The World Shipping Council remains fully committed to supporting U.S. efforts to revitalise the American maritime industry,” Kramek concluded. “We urge policymakers to pursue strategies that encourage growth, strengthen supply chain resilience, and avoid actions that risk harming American exporters, producers, and consumers at a time when global trade is already under pressure.”