China Starts Levying Special Port Fee on U.S.-Linked Vessels

Summary:

[para. 1] On Tuesday, a U.S.-flagged container ship, the Matson Waikiki, docked in Shanghai and became the first vessel subjected to China's newly imposed “special port fee” targeting ships tied to the United States. This event marks the initiation of Beijing’s formal maritime countermeasures against U.S. trade actions, specifically as a response to measures imposed under Washington’s Section 301 trade regulations.

[para. 2][para. 3] The Matson Waikiki, with 4,870 standard containers (TEUs) and a net tonnage of 30,224, was assessed a fee of approximately 12.09 million yuan (about $1.7 million). Transport officials confirmed the fee was applicable, but it remained unclear whether it had yet been paid. Earlier that day, China’s Ministry of Transport issued detailed regulatory guidance outlining the implementation of these special fees, cementing the countermeasures against U.S. maritime tariffs.

[para. 4] According to the regulations, vessels built in China are exempt from the fees. Other shipowners or their agents have to submit extensive documentation about a vessel’s build, flag, owner, operator, charter status, and planned port calls at least seven days before arrival, or immediately upon departure from the prior port for short voyages. Payment of the fee is required in advance.

[para. 5] Authorities will vet ships’ information, and vessels that misreport or fail to pay will be refused import/export clearance; those leaving port without settlement must pay before their next Chinese call.

[para. 6] The levy casts a wide net: it targets ships owned or operated by U.S.-affiliated enterprises or individuals; ships flying the U.S. flag or built in the U.S; and any vessel with 25% or more direct or indirect American ownership.

[para. 7] The fee will be collected per voyage, with escalating rates over the next three years. As of October 14, 2025, the rate is 400 yuan per net ton, rising to 1,120 yuan by April 2028. Multiple Chinese port calls on a single voyage result in a single charge, and vessels are capped at five charges annually.

[para. 8][para. 9] Despite the sweeping language, less than 1% of the world’s fleet is U.S.-flagged or U.S.-built—about 430 ships, with only 18 visiting China in 2025. However, U.S.-controlled fleets total about 1,700 vessels, making the pool potentially subject to the fee larger, especially as cruise lines and other large American-owned entities operate globally.

[para. 10] The broad definition of 25% ownership by U.S. entities could involve many more vessels—international companies listed in the U.S. or with significant U.S. investor stakes may fall under the rules, impacting even European and Latin American shipping companies.

[para. 11] For example, Star Bulk Carriers Corp., the world’s second-largest dry bulk operator, is Greek-run but listed on Nasdaq; its aggregate U.S. investor share could exceed 40%, possibly ensnaring it in the new regime despite none having over 5% individually.

[para. 12] Similar complexities confront other global giants like Denmark’s Torm, Australia’s BHP Group Ltd. and Rio Tinto, Brazil’s Vale SA, and Israel’s Zim Shipping, though ships built in China might be exempt.

[para. 13][para. 14] Enforcement may be difficult, particularly in tracing indirect or offshore ownership and meeting China’s unique “related parties” standards, which differ from global norms. Implementation might vary widely between ports.

[para. 15][para. 16][para. 17] The most directly affected currently is U.S. line Matson Inc.: Its Daniel K. Inouye ship would owe about 7.39 million yuan per call, possibly over 36.96 million yuan annually as rates increase. Matson, with 29 ships (totaling 71,221 TEUs and three on order), has two more vessels waiting at Shanghai. The size of charges remains uncertain, and Matson’s shares have dropped over 10% since October 6 amid investor concern over these financial and trade impacts.