Trump’s Tariffs and the USTR Vessel Policy: A New Era for U.S. Trade and Ocean Freight
The United States Trade Representative (USTR) has recently proposed
a comprehensive set of maritime policies aimed at countering China's dominance in the global shipping industry. These changes—focused on port fees, cargo preference requirements, and service fee remissions—are set to significantly reshape the landscape for U.S. importers, exporters, and shipping companies.
Let's take a look at their potential impacts on the shipping industry and the strategic steps shippers can take to tackle these changes effectively.
What Is the USTR Vessel Policy?
The USTR has proposed new actions to address maritime challenges linked to China’s growing influence in global shipping and shipbuilding. Key elements of the proposed policy include:
⬩Port Fees: Imposing fees on vessels operated by Chinese interests or constructed in Chinese shipyards.
⬩Cargo Preference Requirements: Mandating that a certain percentage of U.S. exports be transported on U.S.-flagged vessels.
⬩Service Fee Remissions: Offering rebates for operators using U.S.-built vessels.
These measures could have significant financial and operational implications for U.S. shippers, potentially leading to increased costs, delays, and port congestion. The goal is to reduce reliance on Chinese-operated vessels and revitalize the U.S. maritime industry.
What’s Changing and When?
1. Increased Port Fees
The USTR's proposal includes substantial port fees targeting Chinese-built and Chinese-operated vessels:
⛩ Chinese-Operated Vessels: A fee of up to $1 million per port call for vessels operated by Chinese shipping companies.
⛩ Chinese-Built Vessels: A fee of up to $1.5 million per port call for vessels constructed in Chinese shipyards, regardless of the operator's nationality.
These fees are designed to incentivize carriers to reduce U.S. port calls by vessels associated with Chinese interests, aiming to alleviate port congestion and promote the use of U.S.-flagged vessels. However, if enacted, these fees could lead to higher costs for shippers, port congestion, and reduced container services. Lloyd's List
Soren Toft, CEO of Mediterranean Shipping Co. (MSC), has expressed concerns that such fees could lead to higher costs for shippers, port congestion, and reduced U.S. container services. Lloyd's List
Toft cited a World Shipping Council assessment estimating the total industry impact of the USTR proposal to be more than $20 billion, potentially resulting in an additional $600 to $800 per container. gCaptain
The proposed fees are structured as follows:
➪ Operators with 50% or more Chinese-Built Vessels: Up to $1 million per U.S. port entry.
Source
➪ Operators with 25%–49% Chinese-Built Vessels: Up to $750,000 per U.S. port entry
Source
➪ Operators with less than 25% Chinese-Built Vessels: Up to $500,000 per U.S. port entry. Source
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Additionally, operators with vessels on order from Chinese shipyards could face similar fees upon delivery. To encourage the use of U.S.-built vessels, the proposal offers a reimbursement of up to $1 million per port entry for operators utilizing U.S.-built vessels for international maritime transport services.
2. Cargo Preference Requirements
The USTR has introduced new cargo preference mandates to bolster the U.S. maritime industry:
⬩ Year 1: At least 1% of U.S. exports must be transported on U.S.-flagged vessels.
⬩ Year 2: At least 3% of U.S. exports must be transported on U.S.-flagged vessels.
⬩ Year 3: At least 5% of U.S. exports must be transported on U.S.-flagged vessels, with 3% on U.S.-built, U.S.-flagged vessels.
⬩ Year 7: At least 15% of U.S. exports must be transported on U.S.-flagged vessels, with 5% on U.S.-built, U.S.-flagged vessels.
These measures aim to create more demand for U.S.-owned and operated vessels, strengthening the U.S. maritime industry. However, they could restrict flexibility for U.S. exporters, potentially leading to higher shipping costs and limited vessel availability.
Sources: Troutman Pepper Locks and gCaptain
3. Service Fee Remission for U.S.-Built Vessels
To incentivize the use of U.S.-built vessels, the USTR proposes a service fee remission:
Remission Amount: Operators using U.S.-built vessels for international services may receive a remission of up to $1 million per port entry into a U.S. port.
This program aims to encourage investment in U.S. shipbuilding, though its long-term effects are uncertain. Operators may need to weigh the costs of transitioning to U.S.-built ships against potential savings from the remission program.
Who’s Affected and How?
→ Importers and Shippers
Companies that import goods into the U.S.—especially those using carriers operating Chinese-built or Chinese-operated vessels—will feel the immediate financial impact of these proposed fees.
➪ Higher landed costs: The additional $600–$800 per container could significantly inflate the total cost of delivery, especially for high-volume shippers.
➪ Route and schedule disruptions: Carriers may reduce U.S. port calls or consolidate schedules to avoid incurring multiple high-fee entries, leading to more blank sailings or transshipment delays.
➪ Congestion and demurrage exposure: Fewer port calls and longer dwell times increase the risk of congestion at U.S. gateways, raising the likelihood of demurrage and per diem charges.
➪ Carrier strategy shifts: Some carriers might reroute ships to Canada or Mexico to avoid direct U.S. calls—forcing importers to consider cross-border logistics or alternative inland routing.
→ Exporters
The cargo preference requirements will have far-reaching effects on U.S. exporters, especially those in sectors like agriculture, chemicals, and energy that are heavily reliant on bulk ocean freight:
➪ Limited vessel availability: There are currently few U.S.-flagged and even fewer U.S.-built vessels available to meet the new thresholds.
➪ Competitive disadvantage: Exporters may face higher freight costs or longer lead times, making U.S. goods less price-competitive on the global market.
➪ Contract renegotiations: Shippers may need to renegotiate long-term agreements with logistics providers to ensure compliance and continuity.
→ Carriers and NVOCCs
Carriers operating Chinese-owned or Chinese-built fleets would be directly affected:
➪ Strategic re-routing: To minimize exposure, they may reduce service frequency, skip U.S. ports, or adjust transshipment hubs.
➪ Profitability squeeze: Fee costs—up to $1.5 million per U.S. port call—could erode margins or be passed on to customers.
➪ Regulatory friction: Global carriers operating mixed fleets may face compliance complexity or even retaliatory tariffs in international jurisdictions.
NVOCCs and 3PLs will also need to revisit their service offerings and customer guidance as the vessel-level cost dynamics change.
Why This Matters for U.S. Supply Chains
These proposed policies are not just about geopolitical strategy—they create immediate and measurable disruptions to the flow of goods.
⬩ Landed cost volatility: The new vessel fees add another layer of complexity to already-fragmented freight bills. Costs that were previously carrier-side are now directly influencing importer margins.
⬩ Supplier and carrier reevaluation: Companies will need to reevaluate both suppliers and carrier networks, particularly those that lean heavily on Chinese-built vessels.
⬩ Freight forecasting risk: Budgeting becomes more difficult as vessel fees vary port-by-port and may fluctuate based on the evolving policy landscape and carrier response.
How to Prepare: A Shipper’s Playbook
The proposed USTR vessel policies are still under review, but the potential impact is already rippling through logistics planning. Here's how importers and shippers can get ahead of the curve:
🗺️ Map Your Exposure to Chinese Vessels
Start with visibility. Work with your freight forwarders, NVOCCs, or booking platforms to answer:
? Are your shipments being transported on Chinese-operated or Chinese-built vessels?
? What percentage of your ocean freight volume is at risk of incurring new port fees?
👉 Tip: Ask for historical carrier allocation by vessel origin and operator to quantify potential added costs.
🗜 Pressure-Test Your Carrier Mix
This is the time to reassess your carrier strategy:
? Can you diversify away from carriers with large Chinese-built fleets?
? Are there U.S., European, or Japanese carriers with comparable service routes?
👉 Why it matters: A more balanced carrier portfolio could reduce exposure and improve negotiation leverage when surcharges begin to show up in quotes.
👷♂️ Build a Buffer into Your Freight Budgets
Model different cost scenarios based on
> Frequency of port calls per container
> Routes likely to use Chinese-built tonnage
> Average surcharge impact per TEU
👉 For planning: Assume $600–$800 per container in potential incremental cost, and adjust your landed cost models accordingly.
🌐 Evaluate Alternate Gateways
With U.S. port fees potentially pushing vessels to avoid direct calls:
-> Assess feasibility of routing via Canadian or Mexican ports
-> Evaluate bonded inland moves or transloads to reach your DCs
👉 Actionable angle: This may offer leverage with inland carriers and create new opportunities for cost optimization—if planned proactively.
📈 Prepare for Contracting Volatility
If you're about to sign an ocean contract (or are mid-cycle):
-> Ensure force majeure or tariff clauses account for this policy shift
-> Ask for transparency on vessel sourcing and potential surcharges
👉 Be ready to renegotiate: Tariff-driven vessel fees may not be baked into current BCO contracts or forwarder pricing.
🕰️ Monitor USTR Rulemaking Timelines
This isn’t just a concept—the proposed rule is open for public comment now. Final implementation could arrive faster than many expect.
👉 Stay informed: Set alerts for updates from the USTR, FMC, and key trade media. Consider joining your industry’s submission to the public comment process if relevant.
Where BlueCargo Fits In
As the regulatory tide shifts, BlueCargo stands ready to help importers navigate the uncertainty with clarity, data, and control.
💰 Dynamic Cost Impact Modeling
We help you with these fees, ranging from $600–$800 per container, as they could affect your landed costs, demurrage risk, and freight budgets. Whether you're preparing for Q3 bids or rethinking your routing strategy, BlueCargo gives your finance and ops teams the real numbers they need.
🧾 Smarter Invoicing and Fee Audits
When vessel fees start appearing in carrier invoices, they won't always be clearly labeled. BlueCargo’s advanced invoice audit engine will:
- Detect and flag new line items related to surcharges
- Match fees to actual container conditions
- Help you dispute inaccurate or unjustified charges
📦 Port Call Optimization to Avoid Congestion Risk
As port rotations shift due to carrier behavior, detention risk rises. Our platform gives your logistics teams early warning signs:
- When containers are at risk of dwell time escalation
- Which terminals are seeing service reductions or slower throughput
- Where to proactively move boxes or push for quicker pickups
💡 While others are reacting, BlueCargo clients are already planning, budgeting, and protecting their networks.
BlueCargo equips your supply chain team with the tools to stay two steps ahead—on the terminal, on the invoice, and at the negotiation table.
💬 Talk to us: Book a consultation with our freight audit team.
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