The United States Trade Representative (USTR) is preparing to finalize a proposal right now. This plan would place significant financial burdens on large containerships constructed in China as they seek entry to U.S. ports. This new initiative is designed to reinvigorate our domestic shipbuilding base, an industry that has withered on the vine over the past decades. According to the U.S. Department of Transportation Maritime Administration, the nation currently has a fleet of just 182 flagged ships. None of this reduces the urgent need to ramp up shipbuilding and cut the foreign-built vessel habit.
We recognize that the USTR’s proposal is an effort to strengthen American manufacturing. It aims to protect long-term economic interests by fostering a robust domestic shipbuilding industry. The World Shipping Council has expressed alarm over a possible chilling effect of these fines. Its members are responsible for the management of 75% of the US Maritime Administration’s Maritime Security Program Fleet. The council estimates that 98% of all liner vessels calling at U.S. ports could soon be affected by these rules.
The proposal comes at a watershed moment for the global liner shipping industry. It is the backbone of an economy that employs more than 6.4 million Americans and adds more than $1.1 trillion to the U.S. gross domestic product. In 2024, deep-sea container liner vessels achieved an outstanding average of 12,410 port calls for the United States! This whole operation is essential to the movement of the $1.5 trillion worth of U.S. exports shipped annually.
The fines would be aimed at foreign-built Chinese ships landing at U.S.-operated ports. Doing so will create new markets for American-built vessels. This play may backfire in unexpected ways. The World Shipping Council warns that these penalties may result in fewer port calls, particularly affecting small and medium-sized ports which rely heavily on container traffic for economic activity.
Canadian ports had 1,692 port calls in 2024, according to Sea-Intelligence, suggesting that vessels might divert to neighboring countries if U.S. fees become prohibitive. It involves container vessels servicing the U.S. that typically visit three or four ports on each trip. Any increase in costs would have a very drastic effect on their shipping patterns.
A commercial vessel has a life span of 20–30 years. This means that any sudden shifts in shipbuilding or port call trends can result in permanent effects. In fact, the USTR’s proposed port fees would raise overall shipping costs by at least $600 to $800 per container. This increase would more than double the cost of exporting U.S. goods, putting them at a global disadvantage.
World Shipping Council’s member companies are global leaders in their industry. They still run two-thirds of the active U.S.-built liner vessels and control all of the liner vessels now on order in U.S. shipyards. This indicates a willingness to support domestic shipbuilding efforts, although concerns remain about the feasibility and economic impact of the proposed fines.