The office of the U.S. Trade Representative (USTR) is taking action against China's efforts to dominate the maritime, logistics and shipbuilding sectors. As part of a Section 301 investigation launched in April 2024, USTR has determined that China's policies and practices burden or restrict U.S. commerce and warrant trade measures.
The investigation stems from a petition filed by five labor unions, including the United Steelworkers and the International Association of Machinists and Aerospace Workers, citing China's aggressive state-led strategies to control global shipbuilding and maritime logistics. USTR found that China’s industrial policies have displaced U.S. and allied companies, reduced competition and increased economic security risks.
According to USTR’s report, China’s global shipbuilding market share surged from under 5% in 1999 to more than 50% by 2023. The country also controls 95% of shipping container production and 86% of the world’s supply of intermodal chassis, significantly altering global supply chain dynamics, USTR said.
To counter these market distortions, USTR has proposed significant fees on Chinese maritime transport operators and foreign shipping companies that rely heavily on Chinese-built vessels.
The proposed measures include a service fee on Chinese maritime transport operators of up to $1 million per vessel entering a U.S. port. Operators with Chinese-built fleets would face fees of up to $1.5 million per vessel entry, with scaled charges based on the proportion of Chinese-built ships in their fleet. Additional fees would apply to operators with pending orders from Chinese shipyards over the next 24 months, reaching up to $1 million per vessel entry to U.S. ports.
A statement from USTR invites stakeholders to submit written comments through the USTR’s electronic portal, which opened on Feb. 21, 2025. Requests to testify at the public hearing, scheduled for March 24, must be submitted by March 10. The hearing will be held at the U.S. International Trade Commission in Washington, D.C. Following the hearing, USTR said rebuttal comments will be accepted for seven days. All submissions will be reviewed as USTR finalizes its policy approach.
USTR noted the proposed fees could have significant implications for global shipping operations. Companies with substantial investments in Chinese shipbuilding may face increased costs when operating in U.S. waters, USTR noted, before highlighting the measures could also incentivize diversification of supply chains and shipbuilding partnerships outside of China.
USTR said that for the U.S. shipbuilding industry, these trade actions represent an opportunity to reclaim market share and rebuild domestic capabilities.
As USTR moves forward with its proposed actions, industry stakeholders are urged to participate in the comment process to shape the final trade policy. The full USTR report and additional details on the investigation can be accessed at https://ustr.gov.
WorkBoat will continue to monitor developments and provide updates on how these measures impact the maritime industry and the broader supply chain.
