USTR Port Fee Proposal Puts a Dent in China's Shipbuilding Dominance

 

Chinese shipbuilders are already feeling the pinch from the Trump administration's unprecedented port fee proposal, even though the details have not yet been released in final form. The Office of the U.S. Trade Representative's fee schedule would increase the cost of doing business at U.S. seaports for all Chinese-built ships, in hopes of jumpstarting demand for American shipbuilding and undercutting the dominance of Chinese state industrialists. 

Whether or not it prompts a resurgence at U.S. shipyards, the USTR plan is already driving international shipowners to reconsider the idea of ordering at market-leading Chinese shipyards. If a Chinese-made ship costs more to operate to and from the United States, then a Korean or Japanese ship may be a better overall value proposition on a lifecycle basis, even if it is more expensive up-front. Owners appear to be taking that bet, based on the latest numbers from Bimco and Clarksons. 

By Bimco's tally, China led the world market in sales in the first six months of the year - but by a much smaller margin, just 52 percent of all tonnage, down from 72 percent in the same period last year. The overall market was also smaller: total global sales numbers plummeted by half compared to the first six months of 2024, led by a sharp drop in bulker orders. This sounds drastic, but Clarksons notes that the drop brings the sales volume back down to earth after a period of hyperactive ordering; when considered against the 10-year average, the first half of 2025 was reasonably typical. Boxship ordering still remains remarkably elevated at nearly double the10-year average pace. 

None of these changes will threaten China's market-leading position in the immediate term. CSSC and its compatriot yards still hold a commanding share of the world's existing orderbook - nearly 60 percent by CGT - but the drop in new-order share represents a hefty chunk out of China's future shipbuilding revenue. South Korea is the leading beneficiary, gaining 25 percent global marketshare in the first half, up from 15 percent year-on-year. Korean yards even picked up the majority of the world's new orders in the month of March (quickly reversed again in April).