Published on Jun 03, 2025
New fees on Chinese ships proposed by the United States Trade Representative (USTR) are likely to raise freight prices but are unlikely to generate significant revenue as companies will have multiple strategies available to avoid the fees, according to experts and industry members.
These strategies primarily involve swapping out large Chinese vessels for smaller non-Chinese vessels or vessels that fall below a size exemption set by the USTR. The existence of shipping cartels, dubbed “alliances” by the industry, which share vessels and cargo capacity between members, gives members flexibility to reconfigure their networks.
The proposal is the culmination of an investigation by USTR into Chinese industrial strategy in the sector, which found that China had targeted the sector dominance, restricting market-based competition and harming U.S. shipbuilders. USTR opened the investigation…
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