U.S. Port Fee New Policy Takes Effect Oct 14: Textile Exporters Confront Sharp Shipping Cost Surges

On October 3 (local time), the U.S. Customs and Border Protection (CBP) issued Announcement CSMS#66427144, declaring that starting October 14, it will impose hefty additional port fees on ships owned, operated, or constructed by Chinese entities. This policy, far from a one-size-fits-all measure, targets specific types of China-linked vessels with tiered cost increases-posing significant disruptions to Sino-U.S. trade and squeezing profit margins for Chinese exporters, particularly those in the textile industry, which relies heavily on maritime shipping for global distribution.

 

 

The new fee structure is designed to specifically impact Chinese-related shipping assets, with costs set to rise progressively through 2028:

 

• Ships owned or operated by Chinese entities: A base fee of $50 per net ton, with annual increases leading to $140 per net ton by 2028.
• Ships constructed in China: A "dual-track" pricing model-either $18 per net ton or $120 per discharged container, whichever is higher. By 2028, these rates will jump to $33 per net ton or $250 per container.
• Foreign-constructed roll-on/roll-off (RoRo) ships (primarily used for vehicle transport): A flat fee of $14 per net ton, with no current plans for annual hikes.

 

The financial implications are substantial. For instance:

 

• An 80,000 deadweight ton (DWT) cargo ship-common for transporting bulk goods-will face an extra $11.2 million in single-port fees once the 2028 rate takes effect.
• A 10,000 twenty-foot equivalent unit (TEU) container ship-widely used for textiles, electronics, and furniture-will incur approximately $5 million in additional fees per U.S. port call. This is equivalent to a de facto 4% tariff on Sino-U.S. trade, with costs either passed on to U.S. consumers (fueling domestic inflation) or absorbed by Chinese exporters, further eroding already thin profit margins.

 

 

 

The CBP's broad definition of "China-related"-encompassing not just Chinese-owned carriers but also ships built in China-amplifies the policy's reach. Data from the first eight months of 2025 shows Chinese shipyards hold 53% of global new ship orders, meaning most major liner companies cannot fully avoid the fees.

 

According to estimates from Alphaliner, the world's top 10 liner companies will face an additional $3.2 billion in annual costs:

 

• China's COSCO Shipping and OOCL will collectively bear $1.53 billion-nearly 50% of the total burden.
• Israel's ZIM, Japan's ONE, and France's CMA CGM will face $510 million, $363 million, and $335 million in extra fees, respectively.

 

 

The fee hikes are already cascading down the global supply chain, impacting both importers and exporters:

 

• U.S. Consumers: Imported goods dependent on Chinese manufacturing-including textiles, furniture, and electronics-will see higher CIF (cost, insurance, freight) prices, which will ultimately push up retail costs.
• U.S. Exporters: Chinese-built or Chinese-owned ships may reduce U.S.-bound routes, leading to scarce shipping capacity and higher return freight rates for U.S. exports such as agricultural products and liquefied natural gas (LNG). Long-term, this could lower throughput at major U.S. ports (e.g., Los Angeles, Savannah) and weaken the international competitiveness of U.S. goods.

 

 

Faced with this unilateral policy, China and global shipping carriers have moved quickly to mitigate risks:

 

China's Proactive Countermeasures

On September 29, China revised its International Maritime Regulations to include new countermeasure provisions. The government now has the authority to:

 

• Impose special fees on ships from countries implementing discriminatory policies.
• Restrict port access for foreign vessels.
• Block access to critical Chinese maritime data.This means if the U.S. maintains its port fee policy, China could retaliate against U.S.-flagged ships, disrupting their route networks and operational efficiency.

 

Carriers' Route and Capacity Adjustments

• Shipping alliances such as PA and GEMINI have announced the suspension of some U.S.-bound routes, reallocating Chinese-built ships to non-U.S. lanes (e.g., Europe).
• Major carriers including MSC and CMA CGM are accelerating the withdrawal of China-built ships from U.S. routes.
• Carriers are also raising freight rates to offset costs: Hapag-Lloyd and MSC announced new Freight All Kinds (FAK) rates starting October 15, with 40-foot container rates from Shanghai to Northern Europe rising to $2,000–$2,200.

 

 

 

For textile exporters-who depend on timely, cost-effective shipping to U.S. markets-proactive adjustments are essential to navigate the crisis:

 

• Diversify Markets: Expand into emerging markets (e.g., Southeast Asia, the Middle East, Africa) to reduce reliance on the U.S. market. Establish overseas warehouses in Mexico or Canada to use land transport for U.S. deliveries, avoiding direct maritime fees.
• Manage Contract Risks: Add clauses addressing policy-driven cost increases to clarify who bears additional expenses. Renegotiate long-term agreements to adjust pricing or shipping routes.
• Optimize Shipment Timing: Accelerate shipments before the October 14 policy 生效 date. For time-sensitive goods, use a combination of "Matson fast shipping + air delivery"; for bulk textiles, test models such as "Mexican warehouse + cross-border trucking."

 

 

This shipping cost war is likely to reshape global supply chains. Companies may accelerate the relocation of some manufacturing operations to countries like Vietnam, Indonesia, or Mexico, with a "third-country production + Chinese components" model becoming mainstream. Direct Sino-U.S. trade shares could decline, triggering a new round of adjustments in global processing trade.

 

With October 14 fast approaching, this U.S.-initiated cost crisis tests both China's shipping industry and the resilience of its exporters. Through coordinated government countermeasures and proactive corporate adaptation, the goal is to break the cycle of "cost surges + supply chain chaos"-a challenge that will shape the future of global shipping and trade dynamics.

 

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