China exempts Chinese-built ships from extra port fees for US interests

Chinese-built ships will be exempt from China’s special port fees on US-linked vessels, the Ministry of Transport said Oct. 14, addressing industry concerns that shipping costs would spike without such an exemption.

The ministry on Oct. 10 had announced extra fees would apply to ships owned, operated, or built by US interests from Oct. 14 in response to similar US levies targeting Chinese ships in efforts to counter what Washington described as China’s dominance in shipbuilding.

Following the announcement, shipping and trading sources said Beijing’s move could push up freight rates by limiting available shipping capacity, if an exemption was not granted on Chinese-built ships operated by US firms or with US-related ownership.

“Ships built in China are exempt from paying the fees,” the ministry said in a web post on the fees’ implementation rules. “Unladen ships entering Chinese shipyards for repairs, as well as other ships that have been approved as exempted, are also exempt.”

Further details on the exemptions are not immediately available. Multiple Beijing-based shipping sources earlier told Platts, part of S&P Global Commodity Insights, that shipping companies with newbuild orders in China would be exempt.

A temporary exemption mechanism would allow shipowners or controllers who sign contracts to build new ships in China -- meeting domestic classification and key equipment localization requirements -- to apply for a fee exemption for existing eligible ships from the order date until delivery, provided the ship is delivered within three years, according to the sources.

Separately, the sources said a one-time reduction of up to 50% of the fees can be applied for ships with contracts signed before Oct. 14 that include non-adjustable fee clauses and have already secured berthing windows, with the transition period capped at 30 days.

Additionally, ships using shore power during berthing, or meeting certain carbon intensity standards, may apply for a fee reduction of up to 10%, the sources added.

Coverage

The ministry confirmed the fees would apply to ships owned or operated by entities that are at least 25% controlled by any US enterprise, organization or individual. Based on a draft of detailed implementation guidelines circulated among the sources, this includes holdings via control agreements or complex structures, or any arrangement providing an equivalent operational control.

China would introduce a verification mechanism to enforce the rules, according to the draft. Maritime authorities, working with port operators and other agencies, will conduct formal and risk reviews. For cases involving complex shareholding or suspected hidden control, authorities may require notarized documentation of ownership structure, board composition, control agreements, or audit reports, according to the sources.

Moreover, random and targeted audits would be included, focusing on ultimate beneficial ownership exploration, flag changes, and shipbuilding origin. China would also require data sharing and joint enforcement with customs, immigration, port, tax and foreign exchange authorities, the sources said.

The sources said the draft outlined the measures to be in force for 12 months from Oct. 14, 2025. Three months before expiry, authorities would assess the effectiveness and decide whether to renew, adjust or terminate the policy, based on US actions and industry impact.

China’s port fee will be Yuan 400 ($56.16) for each net metric ton from Oct. 14. The fee will rise to Yuan 640 from April 17, 2026, Yuan 880 from April 17, 2027, and Yuan 1,120 from April 17, 2028.

In comparison, the US Trade Representative will initially impose extra fees on Chinese ships, ranging from $18-$50 per net ton, also effective on Oct. 14.

China’s fee will be collected only at the first Chinese port of call per voyage, and it will apply to no more than five voyages per ship per year.