North American Member News March 2025

To remedy China’s market power over global supply, pricing, and access in the maritime, logistics, and shipbuilding sectors, USTR proposed to impose certain fees and restrictions on international maritime transport services related to Chinese ship operators and Chinese-built ships, as well as to promote the transport of U.S. goods on U.S. vessels.

The USTR proposes that actions taken by the U.S. may include: fees, charges, or restrictions imposed on Chinese transport operators and Chinese vessels.  Under consideration are:

• Fees on Services (proposed fees can be found in the Federal Register Notice, link below): 

• •  Service Fee on Chinese Maritime Transport Operators.
  • Service Fee on Maritime Transport Operators with Fleets Comprised of Chinese-Built Vessels.
  • Service Fee on Maritime Transport Operators with Prospective Orders for Chinese Vessels.
  • Service Fee Remission for Maritime Transport via U.S.-built Vessels.

• Restrictions on services to promote the transport of U.S. goods on U.S. vessels: 

• • The international maritime transport of all U.S. goods, such as capital goods, consumer goods, agricultural products, and chemical, petroleum, or gas products, must comply with a schedule which increases the use of U.S.-flagged, -built and -operated vessels.
  • The international maritime transport of U.S. goods must comply with the following restriction: U.S. goods are to be exported on U.S.-flagged, U.S.-built vessels, but may be approved for export on a non-U.S.-built vessel provided the operator providing international maritime transport services demonstrates that at least 20 percent of U.S. products, per calendar year, that the operator will transport by vessel, will be transported on U.S.-flagged, U.S.-built ships.

• Other Actions: 

• • Actions to reduce exposure to and risks from China’s promotion of the National Transportation and Logistics Public Information Platform (LOGINK) or other similar platforms, such as recommending that relevant U.S. agencies investigate alleged anticompetitive practices from Chinese shipping companies, restricting LOGINK access to U.S. shipping data, or banning or continuing to ban terminals at U.S. ports and U.S. ports from using LOGINK software.
  • The USTR may consider entering into negotiations with allies and partners in order to counteract China’s acts, policies, and practices and to reduce dependencies on China in the maritime, logistics, and shipbuilding sectors.

Federal Register Notice

USTR Public Report

Docket containing comments submitted by various entities

Overview by Holland & Knight