ALMOST A WEEK after the US Trade Representative office released the latest version of its 28 February China-targeted port and ship penalties, the proposed changes remain heavy criticised.

Analysts point out the charges will still penalise US shippers and their service providers at a likely rate of US$9 billion per year and staged reductions, based on compliance with US sourcing requirements that are almost impossible to achieve, are plainly impractical.

Vespucci Marine’s Lars Jensen, posting on LinkedIn, notes that the intention behind the fees is to shift shipbuilding away from China and back to the US – yet the US has neither the capability nor efficiency to deliver.

He points out US-owned Matson is in the process of taking delivery of 3 x 3620 TEU vessels – hitherto the largest home-built containerships –  at a price of US334.5 million per vessel. This compares to an indicative price for a same-sized vessel from a Chines yard of US$59 million – meaning a 465% premium for the US-builttonnage.

According to the latest report from MB Shipbrokers, a 2800 TEU newbuilding in China has an indicative price of 45 million USD, and a 5400 TEU has a price of 70 million USD. This gives an indication of a price in China of 59 million USD for a 3620 TEU vessel matching the size of the US-built vessels for Matson.

“A, somewhat rhetorical, question is then why anyone would realistically believe that carriers would suddenly stop building vessels in China and revert to US given these differences in newbuilding prices?” Mr Jensen asks.

The latest proposals re Chinese container ships have been predictably slammed by Beijing, and quite specifically by the COSCO Shipping Group, which is the obvious Trump target.

“On April 18, 2025 (Beijing Time), the Office of the United States Trade Representative (USTR) issued a discriminatory decision concerning the Section 301 investigation into China’s maritime logistics and shipbuilding industries,” COSCO said. “We firmly oppose the accusations and the subsequent measures. Such measures not only distort fair competition and impede the normal functioning of the global shipping industry, but also threaten its stable and sustainable development. Ultimately, these actions risk undermining the security, resilience, and orderly operation of global industrial and supply chains.”

The following is extracted from the USTR’s document:

Phased fee on Chinese vessel operators and vessel owners. This fee, based on the net tonnage of the vessel, is assessed against any vessel with a Chinese operator or owned by an entity of China. If a vessel makes multiple U.S. entries before transiting to a foreign destination, this fee is assessed per rotation or string of U.S. port calls. The fee will be set at US$0 for the first 180 days, will then be set at $50/NT, and will increase incrementally over the next three years.

Phased fee on Chinese-built vessels. This fee is based on the higher of (i) a fee based on the net tonnage of the vessel, or (ii) a fee based on per container. If a vessel makes multiple U.S. entries before transiting to a foreign destination, this fee is assessed per rotation or string of U.S. port calls. The fee will be set at $0 for the first 180 days and increases incrementally over the next three years, as described in Annex II.

Certain Chinese-built vessels are not subject to the fee, including: certain vessels enrolled in certain U.S. Maritime Administration programs (e.g., the Maritime Security Program and Tanker Security Program); vessels arriving empty or in ballast; vessels below certain size or capacity thresholds; vessels engaged in short sea shipping (i.e., voyages of less than 2,000 nautical miles from certain U.S. ports); certain U.S.-owned companies’ vessels; and certain specialized export vessels. A vessel operator is eligible for a fee remission for up to three years if it orders and takes delivery of a U.S.-built vessel of equivalent size.

Vessels in Great Lakes and cabotage trades and those serving Caribbean Islands have been completely exempted, but there are hefty new import penalties for Chinese-made containers, chassis and associated parts.

The full document is available here:

301 Ships – Action FRN 4-17.pdf