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Trade rift grows amid new US shipping fees, China LNG import freeze

  • By Al Mayadeen English
  • Source: News websites
  • 18 Apr 2025 09:24
  • 1 Shares
6 Min Read

The US imposes new port fees on Chinese-built and -operated ships to counter what it perceives as China’s maritime dominance and revive its struggling shipbuilding sector.

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  • A Chinese flag flies from a ship at the Port of Oakland on Tuesday, April 15, 2025, in Oakland, Calif. (AP Photo/Noah Berger)A Chinese flag flies from a ship at the Port of Oakland on Tuesday, April 15, 2025, in Oakland, Calif. (AP)

The United States has unveiled a new policy imposing port fees on ships built or operated by Chinese entities, marking a significant escalation in its strategy to counter what it perceives as Chinese maritime dominance and revive the domestic shipbuilding industry.

The move stems from a long-standing investigation initiated under the previous administration and aligns with former President Donald Trump’s broader trade policy. Amid persistent China-US trade tensions, the new measures are framed as an effort to secure economic independence and reinforce American industrial capabilities.

New US port fees target Chinese shipping

Under the new regulation, ships connected to China will face per-tonnage or per-container charges upon each US-bound journey rather than at every individual port stop. This distinction is designed to reduce the burden on shipping operators, while still signaling a shift in policy.

The fees, capped at five assessments annually per vessel, can be waived if the shipowner commits to purchasing a US-built ship. Initially, vessels built in China will be charged $18 per net ton or $120 per container. For a typical container ship carrying 15,000 units, the cost could amount to $1.8 million per trip.

Chinese-operated ships will also incur new fees, with both categories subject to gradual increases in the coming years. Car carriers not built in the United States will be affected starting in 180 days, while fees on liquified natural gas (LNG) carriers are deferred for three years.

Waivers and exemptions explained

A fact sheet accompanying the announcement clarified that the port charges will not apply to ships operating on the Great Lakes, in the Caribbean, in US territories, or to bulk vessels entering the US empty. These exemptions aim to reduce disruption to regional trade routes and commodity shipping.

In addition to ship fees, the US plans to impose tariffs on Chinese-made cargo handling equipment, including ship-to-shore cranes, as part of a broader effort to limit dependence on Chinese maritime infrastructure.

Strategic Push to Revive American Shipbuilding

Once a post-World War II leader in shipbuilding, the United States now accounts for just 0.1% of global ship production. In contrast, Asia, led by China, followed by South Korea and Japan, dominates over 95% of the civilian shipbuilding market, according to the United Nations.

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Industry groups representing over thirty sectors have expressed concern over the cumulative impact of these measures. When combined with ongoing tariffs on Chinese goods and duties on imported steel and aluminum, the port fees could significantly increase costs for US retailers and manufacturers. One surveyed company described the combined pressure as “extraordinary.”

China cuts off US LNG amid trade tensions

China has stopped importing US liquefied natural gas (LNG) for more than ten weeks, according to shipping data, marking a significant escalation in the ongoing US-China trade war that now extends into the energy sector.

The last shipment—a 69,000-tonne LNG cargo from Corpus Christi, Texas—arrived in China’s Fujian province on February 6. Since then, no US LNG deliveries have reached Chinese shores. A second tanker originally bound for China was rerouted to Bangladesh after it missed the deadline for Beijing’s imposition of a 15% tariff on US LNG, which has since surged to 49%, effectively pricing American gas out of the Chinese market.

Tariff hike pushes US gas out of the market

The sharp increase in LNG tariffs has had an immediate effect, deterring Chinese buyers and mirroring a similar halt in energy imports that occurred during Donald Trump's first term. However, analysts suggest this latest rupture could have broader implications for the US-China energy trade.

“There will be long-term consequences,” Anne-Sophie Corbeau, a gas expert at Columbia University’s Center on Global Energy Policy, told The Financial Times. “I do not think Chinese LNG importers will ever contract any new US LNG.”

China’s pullback from American LNG began following the outbreak of the war in Ukraine. In 2023, only 6% of China's LNG imports came from the US, down from 11% in 2021. Many Chinese firms opted to resell US LNG cargoes to Europe, capitalizing on higher prices.

Long-Term Impact on US Energy Exports

Despite the current freeze, major Chinese energy companies like Sinopec and PetroChina remain locked into 13 long-term LNG supply contracts with US exporters, some extending through 2049. These contracts have played a critical role in financing large-scale LNG terminal projects in the US and Mexico.

However, rising inflation and mounting trade barriers are prompting developers to seek renegotiation of existing terms. “The last time this happened, waivers were eventually granted,” said Gillian Boccara, an analyst at Kpler.

“But that was during a period of strong gas demand. Now, with slower economic growth, China can afford to delay,” Boccara told The Financial Times.

Russia Emerges as China’s Key Gas Partner

In a separate development underscoring the widening trade rift, the United States recently introduced new port fees targeting Chinese-built and Chinese-operated vessels. That move, aimed at reviving the American shipbuilding industry, adds another layer to the evolving economic standoff between Washington and Beijing.

At the same time, China appears to be strengthening its energy partnership with Russia. According to Zhang Hanhui, China’s ambassador to Moscow, demand from Chinese buyers for Russian LNG is growing rapidly. “Many buyers are asking the embassy to help establish contacts with Russian suppliers,” he said. “I think there will definitely be more imports.”

Russia has now become China’s third-largest LNG supplier, following Australia and Qatar. The two countries are also in talks to expand their cooperation through a second gas pipeline—Power of Siberia 2.

LNG Trade flow reshuffling underway

With US LNG now facing tariffs described by analysts as “an effective embargo,” global energy flows are beginning to shift, as per The Financial Times.

“We will see a reshuffling of trade flows,” said Richard Bronze of Energy Aspects. “We also expect Asia’s demand to fall by 5 to 10 million tonnes, which should bring gas prices down a bit in Europe.”

As China deepens its ties with Russia and the US raises barriers to maritime trade, the broader consequences of this energy rift are likely to ripple across global LNG supply chains and reshape future investment in American export infrastructure.

  • United States
  • US tarrifs
  • gas freeze
  • maritime dominance
  • China
  • shipping fees

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