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Fleet arrangement from carriers avoiding ABD tax

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The effects of the US’s port fees to be applied to China-linked vessels and coming into force in October have already been reflected in the chartering decisions for transatlantic tanker and dry bulk vessels, alongside a shift of tonnage built in China to other parts of the world.

In the container sector, global companies are moving their vessels elsewhere to avoid being affected by new American penalties coming into force this autumn.

Asian container consultants Linerlytica reported that the Premier Alliance, consisting of HMM, ONE, and Yang Ming, will split its existing Mediterranean Pacific South 2 (MS2) service into two separate services: Asia-Med Mediterranean 2 (MD2) and Middle East Gulf-US Gulf Pacific South 2 (GS2). This move will allow ONE to remove the 10 Chinese-built vessels currently serving on the MS2 service from the US.

Orient Overseas (International) Ltd (OOIL), the listed entity of the Hong Kong container line OOCL, acknowledged last week that the introduction of extra port fees for China-linked tonnage in October could be painful.

A statement issued by OOCL, owned by China’s COSCO, indicated that the potential extra port fees the US would impose on Chinese carriers would have a “relatively large impact.”

In April, the US Trade Representative detailed plans to begin collecting fees from China-linked tonnage calling at US ports starting from October 14th this year, aiming both to reduce China’s dominance in the shipbuilding sector and to increase local shipyard capabilities.

Both OOCL and its parent company COSCO, which is part of the Ocean Alliance, have already taken action by launching, for example, transpacific services that avoid the US and instead go to Mexico.

Maersk has explicitly stated it will avoid introducing any Chinese-built vessels into US trades and expects its competitors to do the same.

US Customs and Border Protection (CBP) has been tasked with collecting the new fee regime targeting China-linked vessels, as authorized by the US Trade Representative’s decision. The rules are structured to take effect from October 14, 2025, and will apply to both /operated and Chinese-built vessels; failure to pay could result in cargo operations and port clearances being blocked through near-operational bans.

Under the finalized policy, fees starting at $50 per net ton and rising to $140 per ton by April 2028 will be levied on vessels owned or operated by China. Non-Chinese operators of Chinese-built vessels will face lower fees, starting at $18 per ton or $120 per container and rising to $33 per ton or $250 per container.

Fees are assessed per voyage (or rotation), capped at five fee-paying port rotations per vessel per year, and applied only at the first port of call. Exemptions are granted for short-sea shipping, vessels below size thresholds, US-owned vessels, ballast voyages, and dedicated export carriers.

CBP confirmed that a new Pay.gov payment portal for the remittances is being developed. Failure to pay the collected service fee will result in the risk of operational denial, from the unloading of cargo to port entry and exit clearances.

This implementation follows industry feedback and revisions on the early April proposals, which had envisaged fixed fees of millions of dollars per call for Chinese-built vessels.

Following objections regarding feasibility and commercial impacts, a phased structure emerged.

Supporters of the controversial decision argue that the measure helps counter China’s dominance in global shipping, enhance U.S. maritime security, and promote domestic shipbuilding. Critics, including the World Shipping Council and major automakers, warn that it could raise consumer prices and reduce trade volume at small U.S. ports.

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