US, China roll out port fees, threatening more turmoil at sea

The United States and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world’s two largest economies.

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China said it had started to collect the special charges on US-owned, operated, built, or flagged vessels but clarified that Chinese-built ships would be exempted from the levies.

In details published by state broadcaster CCTV, China spelled out specific provisions on exemptions, which also include empty ships entering Chinese shipyards for repair.

The China-imposed extra port fees would be collected at the first port of entry on a single voyage or for the first five voyages within a year, following an annual billing cycle beginning on April 17.

Early this year, US President Donald J. Trump’s administration announced plans to levy the fees on China-linked ships to loosen the country’s grip on the global maritime industry and bolster US shipbuilding.

An investigation during former President Joseph R. Biden’s administration concluded China uses unfair policies and practices to dominate the global maritime, logistics and shipbuilding sectors, clearing the way for those penalties.

China hit back last week, saying it would impose its own port fees on US-linked vessels from the same day the US fees took effect.