Industry Insights
Proposed U.S. tariffs on Chinese-built ships: What it means for global trade and voyage planning
Anumita Bhargava
Head of Marketing
Key takeaways
The U.S. is proposing fees of $500,000–$1.5 million per port call on Chinese-built ships.
The goal is to boost U.S. shipbuilding and reduce dependence on China, but the impact on global shipping is significant.
Operators must now rethink port calls, fleet composition, and trade routes to adapt to rising costs.
What´s changing?
The U.S. government has proposed new tariffs on Chinese-built vessels, specifically targeting ocean carriers with a large portion of Chinese-made ships in their fleets. These tariffs are intended to curb China’s dominance in shipbuilding and redirect trade to U.S. and allied shipyards.
However, if enacted, this move will increase costs for vessel operators—not just in container shipping, but also in breakbulk, dry bulk, and tanker sectors, where many ships are Chinese-built.
In recent conversations, several Dataloy customers have raised real concerns about these tariffs. Operators are already analyzing the potential impact on voyage costs, fleet strategy, and chartering decisions. Some are questioning whether certain trade routes will remain viable and how quickly they can adjust to new cost structures.
The risks for shipping companies
Higher Voyage Costs → Increased port fees could make some US port calls financially unfeasible.
Route Diversions → Cargo may shift to Canadian or Mexican ports, altering existing trade flows.
Fleet & Chartering Adjustments → Operators may favor non-Chinese-built vessels for US-bound trips.
Impact on breakbulk, dry bulk, and other shipping segments
While the primary focus of the USTR’s proposals is on container shipping, the implications for breakbulk, dry bulk, and tanker markets are significant. Here’s how these policies could affect various cargo types:
Breakbulk shipping (project cargo, heavy lift, Ro-Ro, etc.)
Increased costs for Chinese-built breakbulk vessels – Carriers operating Chinese-built ships could face port-call fees ranging from $500,000 to $1.5 million, depending on fleet composition.
Reduced availability of vessels for U.S. projects – The U.S. relies heavily on breakbulk shipping for infrastructure, construction materials, and oversized cargo such as wind turbines and machinery. Higher shipping costs may increase expenses for industries dependent on imported equipment, steel, and raw materials.
Potential shift to non-Chinese shipbuilders – To avoid penalties, shipowners may place orders with European (Damen, Wärtsilä), South Korean, and Japanese shipyards. However, global shipyard capacity is limited, which could drive up newbuild prices.
Dry bulk shipping (grain, coal, iron ore, bauxite, etc.)
Higher costs for Chinese-built bulk carriers – The dry bulk sector relies heavily on Chinese-built Handysize, Supramax, Panamax, and Capesize bulkers. New fees could increase freight rates, affecting cost structures for commodity exporters.
Impact on U.S. agriculture and commodities – The U.S. exports large volumes of grain (soybeans, corn, wheat), often using foreign bulkers. A 15% U.S.-built fleet mandate for exports could raise freight costs, reducing competitiveness against Brazil and Argentina.
Diversion of bulk cargo to Canada and Mexico – To avoid U.S. port fees, grain, coal, and other bulk exports may shift to Canadian and Mexican ports, impacting bulk terminal operators in New Orleans, Houston, and Norfolk.
Tanker market (crude, LNG, product tankers)
Potential expansion to tankers – While not explicitly targeted, fees on Chinese-built crude oil and LNG tankers could be introduced in the future. Many U.S. energy companies charter foreign-flagged VLCCs, Suezmax, and Aframax tankers, many built in China.
LNG carrier demand and U.S. energy exports – The U.S. is a top LNG exporter, but domestic shipyards lack the capacity to produce LNG carriers. If fees extend to LNG tankers, there could be pressure to build U.S.-made LNG carriers, which would be challenging given limited domestic production capabilities.
How Dataloy VMS helps navigate uncertainty
With tariffs disrupting voyage economics, shipping companies need real-time cost analysis and route optimization tools to stay competitive.
Many operators are closely evaluating how these proposed changes could affect their fleet strategies and trade routes. While there is still uncertainty, the need for data-driven insights and flexible planning has never been greater.
Dataloy VMS enables operators to:
✔ Compare voyage costs under different scenarios – Understand the financial impact of tariffs before scheduling voyages.
✔ Optimize routing – Minimize exposure to high-cost port calls by exploring alternative trade routes.
✔ Evaluate fleet and chartering adjustments – Identify the most cost-efficient and compliant options in a shifting regulatory landscape.
Having better visibility and decision support tools allows shipping companies to stay agile as they monitor developments and adjust strategies accordingly.
What’s next?
While the USTR’s proposals remain uncertain, the shipping industry is already preparing for potential shifts.
In recent meetings, several customers have voiced concerns about fleet deployment, trade disruptions, and rising costs. Many are weighing their options and considering what actions they might take if the tariffs are enacted.
As global trade becomes more complex, the ability to adapt quickly will be key. Companies that proactively assess their exposure and explore alternative scenarios will be in the best position to mitigate risks.
What are you seeing in your operations? Have these proposals changed your strategic planning? Let’s discuss.
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