“Section 301 Investigation” Officially Implemented
The “Section 301 Investigation” was officially implemented on October 14, with BIMCO estimating that approximately 35% of ships could be affected. On October 10, China’s Ministry of Transport issued an announcement stating that it will impose special port dues on US vessels.
The US punitive measures (imposing USTR fees) against China’s maritime logistics and shipbuilding industries will take effect on October 14, yet the detailed implementation rules had not been made public until the end of September. Entering October, the US government finally updated the follow-up measures, completely shifting the payment responsibility to shipping companies, requiring shipowners and operators to self-determine whether they fall under the category of entities required to pay and to pay the fees voluntarily, otherwise bearing the consequences themselves. The Baltic and International Maritime Council (BIMCO) estimates that about 35% of ships calling at US ports, including dry bulk carriers, crude oil tankers, product tankers, and container ship fleets, may need to pay USTR fees, of which 70% are owned or operated by China. On October 10, China’s Ministry of Transport issued an announcement regarding the collection of special port dues on US vessels, detailing the charging standards and other specifics.
Oil, Bulk, and Container Sectors Under Pressure but Impact Limited
Since the US Trade Representative (USTR) announced the collection of port fees on April 14, almost no details about the specific implementation had been released in the nearly six months that followed. At the Marine Money Asia conference held in Singapore, Andrew MacAllister, a partner at Holland & Knight law firm, stated bluntly: “The USTR’s current state is as murky as mud. US authorities promised to release a FAQ regarding the fee process, but it has not been released yet (as of the end of September).”
It wasn’t until October 4 that the US government released the latest news on the “Section 301 Investigation,” confirming that additional fees would be levied on specific vessels starting October 14. These fee details are based on the “Section 301 Investigation” specific action notice released on April 17, 2025, and the revised version on June 12. The charging standards remain unchanged, but the enforcement mechanisms and billing methods have been tightened and refined. The most significant changes are reflected in three aspects: first, vessel operators are now responsible for self-determining their payment eligibility, as US Customs will no longer conduct active reviews; second, Pay.gov is designated as the sole payment channel, and payment must be completed before port arrival; third, the penalty and accountability mechanisms are strengthened, with non-compliant vessels facing restrictions. This also signifies that the US “Section 301 Investigation” measures have moved from the policy level to the stage of practical implementation.
BIMCO estimates that about 35% of ships calling at US ports could be affected, including large container ships, dry bulk carriers, crude oil tankers, and product tankers, requiring them to pay USTR fees. Among these vessels, 70% are owned or operated by China, and 30% are built in China. Additionally, over 50% of China-built ships are exempt from fees due to their size or US ownership.
It is worth noting that although mainstream ship types face operational pressure due to USTR fees, the impact is limited. According to Clarksons data, using US ports as the statistical base, affected dry bulk carriers account for 7%, container ships and crude oil tankers each account for 5%, and product tankers account for 3%. Using global ports as the statistical base, the proportions are even smaller: dry bulk carriers, container ships, crude oil tankers, and product tankers account for 0.3%, 0.2%, 0.4%, and 0.2% respectively.
BIMCO holds a similar view. Although 35% of ships calling at US ports might be affected, the US shipping market only accounts for 9%–19% of the global market, and perhaps only 16%–24% of US import and export goods are carried by the affected vessels.
Chinese and Foreign Shipowners Actively Respond
As the “Section 301 Investigation” is about to be implemented, Chinese shipowners are being pushed to the forefront of sharply rising costs. On September 16, COSCO Shipping Lines, a subsidiary of COSCO Shipping Group, stated via its official website that the US will begin collecting port service fees from Chinese shipowners and operators, as well as operators using China-built ships. This fee may pose certain challenges to the company’s operations. Taking the “COSCO SHIPPING SAKURA,” a mainstay vessel on COSCO’s US routes, as an example, ShipVision data shows its net tonnage is 84,940. For the 2025–2026 sailing season, a single port call would incur an additional cost of $4.245 million; by 2028, the cost for the same port call rises to $11.886 million. Calculating based on five US port rotations per year per ship, the annual additional cost for a single vessel could reach as high as $59.43 million. An ALPHALINER report in August pointed out that COSCO Shipping Group has deployed 719,400 TEU (including capacity from COSCO Shipping Lines and OOCL) on the Far East-North America route, making it the Chinese shipowner with the largest capacity deployment globally, meaning the “Section 301 Investigation” will have a profound impact on COSCO Shipping Group’s performance.
Despite this, COSCO Shipping Group has always expressed confidence in its US route services and insists on maintaining stable capacity and service quality. Simultaneously, the company will actively improve its product structure to adapt to the evolving demands of the US market and maintain freight rates and surcharges that are competitive and aligned with market levels. This statement has been interpreted by the industry as indicating that COSCO Shipping Lines will not easily withdraw from the US routes and, for the time being, will not pass on the costs through price increases. In the first half of the year, an internal source at COSCO Shipping Lines also revealed to this publication that the newly built container ships this year are all being deployed on US routes to expand capacity.
The shadow of cost does not only hang over Chinese shipowners but also looms over foreign shipping companies. Giants like MSC, Maersk, and Hapag-Lloyd have a large number of China-built vessels that will be taxed by the US based on net tonnage, with rates increasing sharply year by year. This publication previously calculated the pressure on the operating costs of foreign shipowners from this investigation action notice in the article “Section 301 Investigation Ongoing: What Impact on ‘Made in China’”: Assuming a Danish company operates a China-built container ship with a net tonnage of 84,940 and a capacity of 13,800 TEU, it could face a maximum levy of $7.641 million from October 14, 2025, to April 16, 2026, and up to $14.0085 million after April 17, 2028. Leading companies clearly cannot accept such a steep cost curve and have been adjusting their capacity since July.
Facing the impending huge bills, the first strategy is “vessel replacement” – the Gemini alliance led by Maersk and Hapag-Lloyd has already switched to using non-China-built container ships on the Trans-Pacific route. The second is “route splitting” – the Premier alliance split its “Mediterranean – Pacific South 2” service into two. According to estimates by the authoritative consulting agency LINERLYTICA, this move allows 10 China-built vessels to avoid calling at US ports. Finally, there is “rerouting” – using Canadian, Mexican, or Caribbean hubs for transshipment, connecting to the US interior via feeder services. Although this lengthens the voyage, it keeps the high port fees at bay. After these series of maneuvers, Maersk and MSC相继 stated that they would “not pass the costs on to customers.”
The Chinese Government Escorts the Fair and Orderly Development of the International Shipping Industry
Just before the relevant actions were set to take effect on October 14, Premier of the State Council Li Qiang signed a State Council decree, officially promulgating the “Decision of the State Council on Amending the Regulations of the People’s Republic of China on International Maritime Transportation” (the “Decision”), which took effect from the date of promulgation. The full text of the “Decision” consists of 5 articles, with one particularly key article explicitly stating that if any country or region takes, or assists or supports the taking of, discriminatory prohibitions, restrictions, or other similar measures against operators, vessels, or crew members of the People’s Republic of China engaged in international maritime transportation and its auxiliary businesses, the government of the People’s Republic of China will take necessary countermeasures based on the actual situation, unless relevant treaties or agreements provide sufficient and effective relief.
The China Shipowners’ Association, as a representative industry organization, immediately expressed its firm support for the amendment of the International Maritime Transportation Regulations. The association publicly stated that it firmly opposes the current abuse of the “Section 301 Investigation” by individual countries in the maritime sector, which ignores international trade rules and implements discriminatory and restrictive measures imposing port fees on Chinese enterprises. Chinese shipowners will resolutely protect their legitimate rights and interests through legal channels.
Beyond the practical statements from industry associations, Dalian Maritime University also provided an in-depth interpretation of the value and characteristics of this revision from an academic and professional perspective. The university stated that this revision of the International Maritime Transportation Regulations does not deviate from the international legal framework. Instead, based on adhering to the principles of international law, it supplements an important legal basis for China to respond to discriminatory restrictive measures in the international maritime sector. It further enriches China’s legal toolkit for counter-sanctions, counter-interference, and countering “long-arm jurisdiction” in the international maritime field, allowing China to have laws and regulations to follow when dealing with unfair treatment.
On October 10, the official website of China’s Ministry of Transport published an announcement regarding the collection of special port dues on US vessels. Starting October 14, 2025, special port dues will be collected by the maritime management authority at the port of call for the following vessels: vessels owned by US enterprises, other organizations, or individuals; vessels operated by US enterprises, other organizations, or individuals; vessels owned or operated by enterprises or other organizations in which US enterprises, other organizations, or individuals directly or indirectly hold 25% or more equity (voting rights, board seats); vessels flying the US flag; and vessels built in the United States. The specific charging standards are as follows (less than 1 net ton is counted as 1 net ton): (1) For vessels berthing at Chinese ports starting October 14, 2025, the fee is RMB 400 per net ton; (2) For vessels berthing at Chinese ports starting April 17, 2026, the fee is RMB 640 per net ton; (3) For vessels berthing at Chinese ports starting April 17, 2027, the fee is RMB 880 per net ton; (4) For vessels berthing at Chinese ports starting April 17, 2028, the fee is RMB 1,120 per net ton. Simultaneously, if a vessel calls at multiple Chinese ports on the same voyage, the special port due is only paid at the first port of call, and subsequent ports will not charge it. For the same vessel, the special port due will be collected for a maximum of 5 voyages per year. The Ministry of Transport stated: “This move is a legitimate measure to safeguard the legitimate rights and interests of Chinese shipping enterprises. We urge the US side to immediately correct its wrong practices and stop the unreasonable suppression of China’s shipping industry.”
The game in the shipping industry triggered by the “Section 301 Investigation” is a collision between unilateral protectionism and the deep integration of global industrial chains. Industry insiders believe that the focus should now return to the track of multilateral consultation, respecting the laws of industrial division of labor, to achieve the sustainable development of the shipping industry.
