China, U.S. to Suspend Punitive Port Fees for One Year
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A cargo ship prepares to depart from Qingdao Port in Shandong province. Photo: VCG
China and the U.S. have agreed to suspend punitive port fees on each other for one year, providing a temporary truce in a tariff battle that has disrupted global shipping routes since the charges were imposed earlier this month.
The agreement followed a meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Busan, South Korea. On Thursday, a spokesperson for China’s Ministry of Commerce said the U.S. will pause for one year its Section 301 measures targeting China’s maritime, logistics and shipbuilding sectors. In response, China will suspend its own retaliatory measures for the same period. This provides temporary relief to an industry that was already scrambling to reroute vessels and cargo to avoid the steep new costs.
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- China and the U.S. agreed to suspend punitive port fees on each other for one year, easing disruption in global shipping.
- The shipping industry saw rerouting and chaos after fees imposed on October 14, with companies shifting to non-Chinese or non-U.S. vessels and ports.
- Despite the pause, long-term supply chain adjustments persist; Chinese shipowners face significant costs, but China’s shipyards maintain strong order books.
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Who’s Who
- A.P. Moller–Maersk A/S
- A.P. Moller–Maersk A/S (Maersk) is a prominent shipping giant. After the imposition of punitive port fees, Maersk announced that two of its vessels would no longer call at Ningbo Port in eastern China, rerouting cargo to Busan for transshipment. To navigate future uncertainty, Maersk, in a joint venture with Hapag-Lloyd AG, has also shifted to using South Korean-built vessels on U.S. routes. Despite the tariffs, Maersk has continued placing orders with Chinese shipyards this year.
- Hapag-Lloyd AG
- Hapag-Lloyd AG, a German shipping company, has partnered with Maersk in a joint venture. In response to the punitive port fees, this venture has begun utilizing South Korean-built vessels on their routes to the U.S. This is part of a broader strategy by international shipping companies to navigate the uncertainty caused by the tariffs.
- MSC Mediterranean Shipping Co. SA (MSC)
- MSC Mediterranean Shipping Co. SA (MSC) is mentioned as one of the major international shipping companies adapting to the U.S. Section 301 measures on China's maritime sector. Specifically, MSC has been phasing out Chinese-leased ships as part of its long-term avoidance strategies. Despite the U.S. tariffs, MSC has continued to place new orders with Chinese shipyards.
- CMA CGM SA
- CMA CGM SA, a major international shipping company, has been terminating long-term leases on Chinese-built ships as part of its strategy to navigate the uncertainty caused by the U.S. Section 301 measures and China's retaliatory port fees. Despite the trade dispute, CMA CGM, alongside MSC and Maersk, has continued to place orders with Chinese shipyards.
- Ocean Network Express Pte. Ltd.
- Ocean Network Express Pte. Ltd. (ONE) is terminating long-term leases on Chinese-built ships. This action is part of the avoidance strategies international shipping companies are adopting due to the U.S. tariffs on Chinese-connected vessels.
- COSCO Shipping Holdings Co. Ltd.
- COSCO Shipping Holdings Co. Ltd. (中远海运控股股份有限公司) is a Chinese shipowner particularly affected by the US tariffs. A significant 59% of its container capacity is Chinese-made, and all of its ships on order are Chinese-built, resulting in estimated annual cost increases of up to 100 million yuan. The company has committed to not passing these costs to customers or exiting the US market.
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What Happened When
- April 17, 2025：
- The U.S. announced Section 301 measures imposing high port fees on Chinese-owned, operated, flagged, or built vessels.
- September 16, 2025：
- COSCO pledged to customers they would not pass on additional costs or withdraw from the U.S. market.
- October 10, 2025：
- China announced special port dues on ships with ties to the U.S. in retaliation for U.S. tariffs.
- October 14, 2025：
- Both U.S. and Chinese port fees/sanctions took effect, disrupting global shipping routes.
- After October 14, 2025：
- Shipping companies began rerouting vessels; smaller South Korean terminals became hotspots to circumvent the new dues.
- October 29, 2025：
- A shipbuilder in Dalian, China announced new orders for crude carriers from European clients valued between $200 million and $300 million.
- October 2025：
- Chinese President Xi Jinping and U.S. President Donald Trump met in Busan, South Korea and agreed to suspend punitive port fees for one year.
- On Thursday, October 2025：
- A spokesperson for China’s Ministry of Commerce announced the U.S. would pause its Section 301 measures for one year, and China would also suspend its retaliatory measures.
- As of October 2025：
- The Shanghai Maritime Safety Administration had not yet received an official notice to cancel the special dues.
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