Two-thirds of US corn exports face proposed fees on Chinese ships: NCGA

Nearly 70% of US corn exports would be subjected to the fees on China-built ships proposed in a bid to level the playing field between US and Chinese shipbuilders, according to the National Corn Growers Association.

"Of the 2.46 billion bushels of corn exported in 2024, 1.65 billion bushels were inspected for export at the Gulf and Pacific Northwest ports," said NCGA President Kenneth Hartman in the March 24 release.

This means two-thirds of US corn exports are subject to the proposed fees. Bulk shipments carrying corn generally transport between 2.4 million and 3 million bushels, add the document.

The last report of export inspections, released late March 24 by the US Department of Agriculture, showed that during the week ended March 20, 81.3% of the corn shipments were from the Gulf and Pacific Northwest, or 1,172,742 mt.

The US Trade Representative initiated in early 2024 an investigation regarding China's dominance in shipbuilding. Chinese yards have built 50% of the ships in the global fleet and the rest are built in Japan and South Korea.

In the resolution published in 2025, the USTR proposed to impose a fee of $1 million to $1.5 million on any ship built in China, to be collected at the time of entry into any US port.

The NCGA said these costs could translate to an additional 34-64 cents/bu on corn export costs, which is almost always passed down to the farmer.

Platts, part of S&P Global Commodity Insights, estimated that of the latest 1,172,742 mt in corn shipment inspections, around 46.171 million bushels were exported via the Gulf and Pacific ports during the week ended March 20. The additional cost would be around $15.698 million to $29.549 million just for shipments in that week.

"That translates to 14% higher costs from current price levels, not accounting for potential stacked fines. The added cost has the potential to reduce US corn exports and impede market access," said Hartman.

Adding further financial strain through higher transportation costs could result in more instability, particularly for those who depend on global export markets to remain competitive, the association said.

US corn exports remain strong and will be that way if the price remains competitive, a trader noted.

"Premiums higher at every major origin again today, as far as I can tell, US corn is still going to be the cheapest origin in the world for a while longer," said the source March 25.

Mary Porath, an analyst for grains at Commodity Insights, said the outlook for US corn exports is strong and is expected to rise in the coming weeks.

"The pace of export inspections is in line with our projection for total corn exports to reach 2,550 million bushels in the 2024/25 marketing year. We are well above the USDA in our export forecast and believe they will revise their outlook higher in coming reports," said Porath March 25.