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The Trump administration has proposed steep new fees on Chinese-built and Chinese-operated ships docking at U.S. ports, a move that could reshape North American shipping routes and deliver significant advantages to Canadian ports and railroads.
Under the U.S. Trade Representative (USTR) proposal, ships constructed in China would face fees of up to $1.5 million per U.S. port call. Vessel operators with even one Chinese-built ship in their fleet could be charged $500,000 per call, while Chinese shipping companies like COSCO would incur $1 million per call for any vessel, regardless of its origin.
These unprecedented fees aim to counter China’s dominance in global shipbuilding and maritime transport but could inadvertently disrupt U.S. trade flows and supply chains.
Industry experts predict the fees would divert substantial cargo volumes from U.S. ports to Canadian alternatives. Ryan Petersen, CEO of Flexport, noted on social media that, “a lot of U.S.-bound freight will attempt to divert to Prince Rupert and Vancouver and then rail into Chicago and other points east.”
Read more in an article from FreightWaves.
