Trade groups urge permanent suspension of China-linked ship fees

Trade groups and shipper associations representing retailers, manufacturers, and importers have urged U.S. Trade Representative Jamieson Greer to permanently suspend Section 301 fees on China-built or China-linked vessels, according to Supply Chain Dive.

These fees, which have been paused for a year and are set to resume November 9, range from $18 per ton to $120 per container. The fees aim to encourage domestic shipbuilding by offering vessel owners an up-to-three-year exemption on fees if they order a new U.S.-built vessel.

More than 250 stakeholders, including the National Association of Manufacturers, the National Retail Federation, and the World Shipping Council, signed a letter expressing concern that resuming fees would add costs to an already strained transportation system and increase uncertainty for shippers.

The groups highlighted that China-built vessels represent a meaningful share of global ocean carrier capacity, meaning the fees would affect more than a narrow set of market participants.

Ocean freight rates on the Transpacific trade lane have remained elevated this year amid factors such as the Iran war and tariffs, while shippers also face increased transportation costs from higher diesel prices.

The USTR proposed extending the suspension until January 9, 2027, and sought public comments on the matter.