USTR's Action on China's Shipbuilding Dominance

We would like to update you with additional information announced by the Office of the U.S. Trade Representative (USTR) that will impact vessels connected to China calling U.S. ports, starting October 14, 2025. Please see below more detailed information:

• Who is affected for Chinese-Owned or Operated Vessels?

Ships where the owner or operator is considered a Chinese entity (25%+ ownership, board seats, equity, or headquarters in China, Hong Kong, or Macau).

Fee Schedule:

Effective October 14, 2025 ->$50/fee per Net Ton -> Up to 5 voyages

Effective April 17, 2028 -> $140/fee per Net Ton ->Up to 5 voyages

Specific notations for above fees:

-Fee applies once per U.S. voyage, not per port call.

-Could result in millions in added cost per large vessel annually.

• Who is affected for Chinese-Built Vessels (Not Chinese-Owned)?

Ships built in China but not operated or owned by Chinese entities.

Fee Schedule:

Effective on October 14, 2025 -> $18/per Net Ton ->$120/per container discharged

Effective on Apr 17, 2028 -> $33/per Net Ton ->$250/per container discharged

Specific notations for above fees:

-Applies to whichever is higher

-Applies once per voyage, up to 5 times/year

-Exemptions may apply.