China’s new port service charges for US vessels

Update 4 November 2025

The White House announced that enforcement of the USTR service fees will be suspended on 10 November 2025.

Special update 30 October 2025

In a significant diplomatic development, US President Donald Trump and Chinese Premier Xi Jinping have decided to suspend reciprocal port charges for one year following a meeting in South Korea on Thursday 30 October 2025.

Update 22 October 2025

Skuld has received advice indicating that time and voyage charterers might be classified as "operators" under the Implementation Measures. The term "operator" in Chinese law could extend to any entity that exerts effective control over operational decisions, including routes, berthing, loading, and unloading. If this interpretation holds, the definition of "operator" would be significantly broadened, leading to extensive implications.

Both articles concerning China Special Port Fees have been updated. Additionally, new sections have been incorporated, detailing actions members can take if vessel entry or clearance is denied and explaining International Ship Transport License.

Update 14 October 2025

The Chinese Ministry of  Transport issued Implementation measure this morning. At this stage, the penalties appear to be less severe than previously anticipated by Skuld. Skuld has been informed that if the information is not provided, or is incorrect the maritime authority will request the agent or owner/operator to correct or supply the relevant information.

If Special Port Fees are not paid, vessel entry or clearance may be denied. If the vessel departs China without payment, it will be required to pay these charges on its next visit to China.

This update has also been incorporated into the article text.

A guide for members on the recent Announcement 54 (‘’Announcement 54’’) by the Chinese Ministry of Transport about Special Port Fees on United States vessels

Background to Announcement 54

On 10 October 2025, China's Ministry of Transport announced that, starting 14 October, Special Port Fees will apply to United States (U.S.) vessels at Chinese ports. This measure responds to the U.S. port service fees, effective the same day, targeting Chinese-owned, operated, flagged, or built ships following a Section 301 investigation by the USTR into China's maritime, logistics, and shipbuilding sectors.

Which vessels may be caught by the regulations?

Announcement 54 sets out five categories listed below. 

Skuld is grateful to Wang Jing & Co for their guidance on Announcement 54. This guidance explains possible interpretations of these categories and they observe that... ; the Announcement adopts a fourfold criterion of “ownership + control + nationality + place of construction, resulting in a very broad scope of application.”

What fees will apply?

The Special Port Fees will apply as set out in the table below and will be collected on a per-voyage basis. They will rise over time.

Note: (fractions of one net ton shall be counted as one net ton):

Payment

• When to pay: The Special Port Fees become effective on October 14, 2025. 
• Where to pay: The Special Port Fees are paid at the first Chinese port of call during a voyage. 
• How it's charged: The fee is charged per voyage, and a vessel will not be charged again at subsequent ports of call on the same voyage. 
• Annual limit: Each vessel is subject to the special port fee for no more than five voyages within a year. 

When does payment need to be made?

The maritime administration authorities of the respective port of call will collect the Special Port Fees. It is recommended that payment be made before the vessel leaves the first port of call in China.

How will this be implemented?

Ship operators, masters, or local agents are likely responsible for reporting to local authorities. The Maritime Administration will charge Special Port Fees at Chinese ports, with details expected soon. Required information about chartering may need to be submitted several days before arriving at or departing from the first Chinese port to confirm whether the vessel is subject to Announcement 54.

Skuld is aware that the Chinese Ministry of Transport plans to establish specific implementation measures. This section will be updated once those measures become available.

What will happen if a wrong declaration is made for the purpose of Announcement 54?

The exact range of action the local authorities may take is not entirely clear, however, advise received recently by the Skuld suggests that if an owner and operator has a US Nexus which is sufficient for the purposes of Announcement 54 and that is not appropriately declared to the local authorities it could result in suspension of service, refusal of port entry, delay to the vessel while the authority investigates, penalties and possible detention of the vessel.

The Chinese Ministry of Transport issued Implementation measure on 14 October. At this stage, the penalties appear to be less severe than previously anticipated by Skuld. Skuld has been informed that if the information is not provided or is incorrect the maritime authority will request the agent or owner/operator to correct or supply the relevant information.

If Special Port Fees are not paid, vessel entry or clearance may be denied. If the vessel departs China without payment, it will be required to pay these charges on its next visit to China.

Will the Special Port Fees apply to US bareboat charterers?

The Special Port Fees will likely apply to US bareboat charterers, as the definition of operators in China includes bareboat charterers.

Will the Special Port Fees apply to financial leases with a US Nexus?

The Special Port Fees may apply to financial leases if US stakeholders have at least 25% ownership, voting rights, or board membership and/or beneficial ownership or substantial control of the Shipowners or Operators. This includes vessels owned by entities where combined US interests meet the threshold, even though in a consortium. Wang Jing & Co note that definitions of US Nexus and ownership are broad and complex, so members should seek specialised legal advice if affected.

Will the Special Port Fees apply to entities listed on the NY Stock Exchange?

Wang Jing & Co state that ..’’merely being listed on the New York Stock Exchange would not, by itself, constitute a U.S. enterprise under this definition.’’.

However, if the entity listed on the NY Stock Exchange has other US nexus ties Skuld recommends that further advice be taken, given the complex nature of how any assessment of US nexus will be determined.

Will the Special Port Fees apply to US charterers and/or ship managers with a US Nexus?

The definition of ship operators does include bareboat charterers; however, its applicability to other types of charterers or ship managers remains unclear. Skuld understands that the Chinese Ministry of Transport will issue additional provisions in the coming days.

Update 22 October 2025
Skuld has recently been advised that there is a possibility that voyage charterers and time charterers may also be considered as “operators” under the Implementation Measures, as the definition of an “operator” under Chinese law may also include any entity exercising effective control over operational decisions such as routes, berthing, loading and unloading. If this interpretation is confirmed, the scope of entities falling under the definition of “operator” could be quite broad, potentially resulting in far-reaching implications.’’ Members seeking assistance on this should reach out to their usual claims handler.

What impact could the Special Port Fees have on existing charter parties, under English law?

Skuld recommends that members check their charter party provision to see if any clause specifically deals with obligations to pay port charges.

Who will be responsible for the Special Port Fees under English law with a standard time charterparty? 

In most cases, the Special Port Fees are likely to be charterers’ responsibility on the basis that they should either be treated as “port charges”[1] or expenses recoverable by owners under the implied or express indemnity against the consequences of complying with charterers’ orders as to the employment of the vessel (namely to trade the vessel to China).

However, the position is not straightforward, bearing in mind that the Special Port Fees are only payable due to the special characteristics of the vessel[2].

There may, of course, be particular provisions in the charterparty which make it clear that the Special Port Fees are for owners’ account or for charterers’ account.

Skuld recommends that members contact their usual claims handlers for assistance regarding the Special Port Fees for further guidance.

Who will be responsible for the Special Port Fees under English law under a standard voyage charterparty?

Under most standard voyage charterparties, it is likely that owners/disponent owners (not charterers) would be responsible for the Special Port Fees but the charterparty may contain provisions which alter the position; for example, Clause 12 of the Asbatankvoy Form provides that “Charterers are responsible for any unusual taxes, assessments and governmental charges which are not currently in effect but may be imposed in the future on the Vessel”.

Would the imposition of the Special Port Fees frustrate a charterparty under English law?

The conventional view is that the imposition of Special Port Fees would not frustrate most Charterparties because, as a general rule, increased expense is not sufficient to frustrate a contract (even where the expense is such as to make performance of the contract a commercial disaster for one of the parties)[3]. However, the law on frustration is still developing, and it has been suggested that a contract may be frustrated where the additional expense is so extraordinary that it would be unjust to hold both parties bound[4].

Therefore, where the Special Port Fees are extremely high[5], there may be a respectable argument that the Charterparty is frustrated. However, in the absence of direct authority and the fact that different Courts or Tribunals may hold different views as to what is “unjust”, there would be considerable uncertainty as to the prospects of success.

How can owners and charterers protect themselves under future charterparties?

Skuld recommends that owners and charterers have clear provisions in their charterparties regarding responsibility for the Special Port Fees.

For purposes of a time charterparty, the BIMCO USTR Clause could be amended to deal with the Special Port Fees. However, charterers should, in any event, check, prior to concluding the fixture, whether the vessel will be subject to the Special Port Fees (as the BIMCO Clause only provides for owners to provide this information (if requested) after the charterparty is fixed.

For purposes of a voyage charterparty, Intertanko have a voyage charter clause that could also be adapted. If owners require charterers to pay the Special Port Fees, they could insert a very specific clause to that effect. Conversely, if charterers do not wish to be responsible for Special Port Fees, they should carefully check their charterparties to make sure that there are no clauses (such as Clause 12 of the Asbatankvoy) which might expose them to such responsibility.

Skuld claims handlers are monitoring this developing situation. If members have any queries, they should contact their local claims handler for assistance.

Acknowledgements

Skuld is very grateful to:

John Wang, Wang & Jing & Co.
Glenn Winter, Winter & Co.
Lianjun Li, Reed Smith
Oasis P&I

[1] See, for example, Clause 2 of the NYPE Form which provides that Charterers are to provide and pay for all “Port Charges … and all other usual expenses…”.

[2] “It appears that a Bareboat Charterer is likely to be treated as operating the vessel but it is understood that there is a possibility that Time Charterers, or even Voyage Charterers, may also be considered to be “Operators”. If special port fees are payable because Time Charterers have a US connection and are treated as operating the vessel, it is even more likely that Charterers would be held responsible for such charges under a standard Time Charterparty.”

[3] See, for example, The Eugenia [1963] 2 Lloyd’s Rep. 381. In addition, frustration would not generally occur where Charterers have the option to send the vessel elsewhere.

[4] See, for example, the comments in Carver on Charterparties (3^rd ed) at 10-1090 and in The Angelia [1973] 1 WLR 210.

[5] It is understood that the Special Port Dues may amount from US$9 million to US$10 million in the case of a VLCC.