The availability of cargo ships for transporting goods has dropped sharply following the introduction of new port fees by the U.S. and China. Industry leaders warn that this could lead to higher consumer prices in both countries.
The issue emerged as shipping companies began removing China-linked vessels from U.S. trade routes to avoid the port charges that took effect on October 14. Similarly, U.S.-linked ships were pulled from Chinese schedules to sidestep retaliatory fees introduced on the same date.
These changes have caused disruptions in port operations, resulting in delays and reduced cargo volumes. The lack of clarity regarding how China considers ownership or control when calculating these fees is especially alarming to shipping companies.
The newly imposed China-U.S. port charges interfere with the ships’ operations
Stamatis Tsantanis, the CEO of Seanergy Maritime Holdings, a dry bulk shipping company, noted that the overall number of ships that can dock at China’s ports is definitely smaller than it used to be. Notably, this trend has been seen across all shipping markets.
Considering the intense nature of the situation, Tsantanis warned that all these charges might eventually be passed on to consumers. Based on his argument, this would, in turn, make things more costly.
His remarks came after an analyst from Jefferies, Omar Nokta, shared a note revealing that the Shanghai Containerized Freight Index (SCFI) surged by 12.9%, reaching a four-week high. This escalation has been attributed to substantial rate increases on transpacific routes encountered after China made its port charges public last weekend.
In response to these new alterations, several major container shipping companies, including Maersk, Hapag-Lloyd, and CMA CGM, have adjusted their shipping routes to avoid paying U.S. port charges.
To illustrate how serious they are about this situation, the Gemini Alliance members, Maersk and Hapag-Lloyd, informed their clients this week that their ships, the Maersk Kinloss and Potomac Express, will not stop at Ningbo. Ningbo is the only Chinese port these U.S.-flagged ships visit after construction in South Korea.
“This new regulation will cause more interference to vessel operations and trade,” said Gernot Ruppelt, the CEO of Ardmore Shipping, which transports clean petroleum products, chemicals, and vegetable oils.
Ruppelt explained that the markets have not yet begun adapting to these changes, which he referred to as added complexity. Interestingly, the CEO mentioned that Ardmore has no scheduled stops in China.
Analysts point out the effects of the new U.S.-China port fees on VLCCs
China’s retaliatory port fees imposed on ships linked to the U.S. have significantly raised rates for very large crude carriers (VLCCs) moving to China. Notably, China is ranked as the largest importer of crude oil worldwide.
Regarding the effects of the new port charges on VLCCs, the fees have reduced the number of tankers that can be rented without encountering high port charges.
In the meantime, reports dated Tuesday, October 14, highlighted that benchmark rates for VLCCs hit their highest records in two weeks following the introduction of new port fees. These rates, however, started to decrease slightly by the end of the week.
Seeing this fluctuation in rates for VLCCs, the Consultancy Energy Aspects bumped up its estimate for VLCC rates in the fourth quarter of 2025, with potential for further upward pressure should disruptions become more severe.
While Chinese-built ships are currently exempt from these port charges, which has lessened some of the potential effects, Gibson Shipbrokers said that several U.S.-owned or operated vessels are still affected.
Meanwhile, China’s tech sector remains resilient despite growing U.S. pressure and global market turbulence. From October 20 to 23, Beijing’s top officials will meet to outline their five-year goals, and technology is expected to dominate the agenda.
The country’s government isn’t backing off, despite trade tensions, and analysts believe China’s equity space still has solid ground, mainly in local tech.
According to CNBC, some investment strategists remain bullish, especially after DeepSeek unveiled its surprise AI model earlier this year. The launch demonstrated to the world that China can still compete in artificial intelligence, despite U.S. chip sanctions being in place.
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