VMA VOICES CONCERN OVER NEW CHINESE SHIP FEES

March 31, 2025

NORFOLK, VA | The Virginia Maritime Association (VMA) has added its voice to those of other trade groups and businesses opposing proposals by the U.S. Trade Representative to impose significant fees on operators of Chinese-built ships when their vessels call U.S. ports. Comments submitted by VMA and others highlight concerns over the proposed fees that could result in higher costs for importers and consumers, as well as potential job losses. The plan, introduced by the U.S. Trade Representative’s office, aims to impose millions of dollars in new fees each time an ocean carrier calls a U.S. port (1) with a Chinese-built ship, (2) based on the percentage of Chinese-built ships in their fleet, and (3) the orders placed for new Chinese-built ships.

The VMA is monitoring the situation and has communicated its concerns to the Virginia Congressional delegation and Governor Youngkin. While VMA supports the administration’s objective to revitalize American shipbuilding and broader maritime industries, we question whether the proposed fees and restrictions will achieve these goals. Our members, particularly those in Virginia’s coal export and agricultural sectors, have raised concerns that these fees will directly increase transportation costs, affecting global competitiveness. Moreover, the limited availability of non-Chinese vessels could result in higher charter rates, longer wait times, and inflationary pressures on supply chains. Reduced sailings by ocean carriers, focusing only on the largest ports, will likely exacerbate congestion, delays, and inefficiencies, impacting manufacturers, exporters, importers, and the broader economy. The potential for higher costs will ultimately be passed down to consumers, a concern shared by VMA members.

While VMA appreciates the administration’s focus on strengthening U.S. shipbuilding, the immediate negative impact of these proposed fees could outweigh the long-term benefits. As the potential for job losses and increased costs looms, the maritime industry is urging a reevaluation of the plan to ensure that it doesn’t inadvertently harm the very sectors it aims to support. Review the official letter below.

Official Letter

VMA Comments