Trade Associations Urge USTR to Stand Down on U.S. Port Fee for Chinese Ships

On July 7, 2025, a coalition of over 160 trade associations, including the National Customs Brokers & Forwarders Association of America (NCBFAA), sent a compelling letter to the Office of the U.S. Trade Representative (USTR). The letter urged the USTR to reconsider its proposed actions under the Section 301 investigation into China’s efforts to dominate the maritime, logistics, and shipbuilding sectors. Specifically, the associations called for the USTR to refrain from imposing a port fee on Chinese-built ships calling at U.S. ports, citing significant negative impacts on American businesses and consumers.

Background of the USTR Proposal

The USTR’s actions stem from its investigation into China’s strategic targeting of key global industries, as outlined in the Request for Comments Concerning Proposed Modification of Action Pursuant to the Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance (USTR-2025-0013). Public comments on the proposal were due on July 7, 2025. While the trade associations acknowledge the need for scrutiny of China’s maritime ambitions, they argue that the proposed port fee would fail to curb China’s broader goals and instead create immediate economic challenges for the U.S.

Concerns Over the Port Fee

The trade associations expressed deep concerns about the ripple effects of the proposed fee. They warned that ocean carriers are likely to reduce services to U.S. ports, particularly smaller ones, to avoid the additional costs. This reduction could lead to increased congestion across the U.S. logistics network, driving up costs and causing delays for both imports and exports. The letter emphasized that these disruptions would establish a “new normal” of higher expenses and inefficiencies, disproportionately affecting American importers, exporters, and consumers.

The Baltic and International Maritime Council (BIMCO) has already taken steps to address the contractual uncertainties arising from the USTR’s proposal. BIMCO announced the development of a standard industry clause to mitigate the financial and operational impacts of the port fee. However, this measure is expected to further increase costs for U.S. businesses reliant on maritime trade.

 

Looking for a Logistics Partner... Get a Quote Today | Red Arrow Logsitics

 

A Call for a Strategic Alternative

Rather than imposing a port fee on Chinese-built vessels, many of which were purchased years ago, the trade associations advocated for a more strategic and sustainable approach. They called for “a dedicated strategy with sustained investments, leadership, and a long-term commitment from both the public and private sectors” to revitalize the U.S. maritime, logistics, and shipbuilding industries. Such an approach, they argued, would strengthen domestic capabilities without penalizing American businesses or disrupting global supply chains.

Your Trusted Partner

At Red Arrow Logistics, we understand the critical role that efficient and cost-effective maritime trade plays in the success of American businesses. As the industry awaits the USTR’s final decision, Red Arrow Logistics remains committed to keeping our clients informed and prepared for any changes that may impact their operations. We will continue to monitor developments closely and provide tailored solutions to navigate these challenges.

Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike.  If we can be of assistance, please email us at info@redarrowlogistics.com or give us a call at 425-747-7914.