INTERNATIONAL CHAMBER OF SHIPPING WELCOMES SUSPENSION OF US PORT FEES

The International Chamber of Shipping (ICS) has welcomed the U.S. government's decision to suspend Section 301 port fees on Chinese-linked vessels, calling it a positive step toward easing maritime trade tensions and stabilizing global supply chains.

 

The fees, introduced earlier in 2025 under a trade enforcement action targeting China's dominance in shipbuilding and logistics, had drawn criticism from global shipping stakeholders for raising costs and disrupting port operations.

 

ICS emphasized that the one-year suspension, agreed upon by the U.S. and China in late October, offers much-needed relief for carriers and port operators navigating an already strained logistics environment.

 

ICS said in a statement that it has been involved in consultations with the United States Trade Representative (USTR) since the beginning of the Section 301 investigation, and the government of China.

 

"The reports of the U.S.' agreement to suspend the Section 301 port fees on China's maritime, logistics and shipbuilding industries by one year, and the agreed reciprocal suspension of China's countermeasures targeting US linked ships, is a welcome and positive development," ICS said.

 

"ICS supports the ambition to increase U.S. shipbuilding capacity and to make the United States Shipbuilding industry strong, as additional commercial tonnage strengthens the global maritime sector's efficiency and competitiveness. However, the port fees imposed by the USTR on October 14, 2025, and subsequently by China as countermeasures to U.S. linked ships, has already posed significant challenges and disruptions for the shipping industry and global trade," it added.

 

"At ICS we strongly advocate for the need for shipping to be able to move trade freely and efficiently, and remain committed to working collaboratively with all administrations and international partners to avoid any disruptions to the flow of global trade."

 

The United States suspended port fees on Chinese-linked vessels starting November 10, 2025, as part of a one-year truce in maritime trade tensions with China. This move followed bilateral talks and aims to stabilize global shipping and revive U.S. shipbuilding.

 

In April 2025, the USTR imposed new port fees on Chinese-built and -operated merchant ships calling at American ports. These fees—approximately US$50 per net ton—were part of a broader strategy under Section 301 of the Trade Act of 1974 to counter China’s dominance in global shipbuilding and maritime logistics.

 

The action stemmed from a federal investigation that concluded China had leveraged unfair trade practices to gain a dominant position in the global shipping sector. In retaliation, China introduced its own port fees targeting U.S.-registered ships and companies with substantial U.S. investment.

 

On October 30, during trade talks in Busan, South Korea, President Donald Trump and Chinese President Xi Jinping agreed to a one-year suspension of these reciprocal port fees. The suspension took effect on November 10, 2025, and applies to all vessels with U.S. or Chinese nexus.

 

Key elements of the agreement include U.S. suspension of Section 301 port fees targeting Chinese maritime interests; China’s reciprocal pause on its retaliatory port fees for U.S.-affiliated ships; continued negotiations under Section 301 to address long-term maritime trade imbalances; and cooperation with South Korea and Japan to revitalize U.S. shipbuilding capacity.

 

The suspension has been welcomed by shipping companies and trade analysts as a temporary relief amid volatile global logistics. However, concerns remain about the short duration and the potential for renewed tensions if negotiations stall.