New U.S. Trade Measures Target China’s Shipping and Logistics Policies

Trade Update • Feb 26, 2025

recent U.S. investigation found that China’s maritime, logistics, and shipbuilding policies create unfair competition, restrict U.S. commerce, and increase reliance on Chinese services. The USTR is proposing measures to counteract these practices and protect U.S. industries.

Proposed Actions

New Fees on Chinese Shipping Operators

1. General Fees on Chinese Maritime Transport Operators (MTOs):

• Up to $1 million per vessel entry into U.S. ports.
• Alternatively, up to $1,000 per net ton of vessel capacity per entry.

2. Higher Fees for MTOs Using Chinese-Built Ships:

• Up to $1.5 million per vessel entry if more than 50% of the fleet is Chinese-built.
• Tiered fees for fleets with lower percentages of Chinese-built ships.

3. Fees for Future Orders of Chinese-Built Ships:

• Operators with 50% or more of new vessel orders from China: $1 million per vessel entry.
• Operators with 25-50% of new orders from China: $750,000 per entry.
• Operators with up to 25% of new orders from China: $500,000 per entry.
• Flat fee alternative: $1 million per vessel entry if 25% or more of new orders are from Chinese shipyards.

4. Refund Incentives for U.S.-Built Ships:

• Operators using U.S.-built ships can receive an annual refund of up to $1 million per vessel entry into U.S. ports.

Encouraging U.S.-Flagged and U.S.-Built Vessels for Exports

To strengthen the U.S. maritime industry, a phased approach will require increasing percentages of U.S. exports to be carried on U.S.-flagged and U.S.-built vessels:

• Year 1: At least 1% of exports on U.S.-flagged vessels.
• Year 3: At least 5% (with 3% on U.S.-built ships).
• Year 7: At least 15% (with 5% on U.S.-built ships).

A rule will also require U.S. goods to be exported on U.S.-flagged, U.S.-built ships unless operators demonstrate that at least 20% of their transported U.S. products are on such vessels.

Other Measures to Reduce Dependency on China

• Restricting Access to China’s LOGINK Platform: The USTR aims to limit China’s influence in global logistics by restricting the use of its National Transportation and Logistics Public Information Platform (LOGINK).

• Working with U.S. Allies: The U.S. will negotiate with trade partners to counter China’s unfair maritime policies and promote alternative supply chains.

How to Participate

The USTR is accepting public comments and participation requests, key dates and processes are as follows:

• Submit Comments By: March 24, 2025 (Docket No. USTR–2025–0002), through USTR’s online portal.
• Request to Speak at the Hearing By: March 10, 2025 (Docket No. USTR–2025–0003).
• Public Hearing Date: March 24, 2025.
• Post-Hearing Rebuttal Comments Due: Seven days after the hearing.

To read the full notice, visit the Federal Register.

Full details on the USTR’s Section 301 Investigation report.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! gts@ghy.com, or call +1 (800) 667-0771.