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WFW: Suspension and amendments to US and China port fees – current status

WFW New York Partner Daniel Pilarski, reviewed the United States and China’s decision to each suspend their port fees on Chinese- and US- linked vessels.

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International law firm Watson Farley & Williams (WFW) on Friday (21 November) published an article by WFW New York Partner Daniel Pilarski, reviewing the United States and China’s decision to each suspend their port fees on Chinese- and US- linked vessels: 

Following the trade summit between US President Donald Trump and Chinese President Xi Jinping, the United States and China have each suspended their port fees on Chinese- and US-linked vessels, respectively, for a one-year period beginning November 10, 2025. The port fees took effect on October 14, 2025. See our earlier summaries of the United States and Chinese port fee regimes.

USTR Port Fees – Timeline and Amendments

The USTR port fees were initially enacted pursuant to an April 17, 2025 notice (the “April Notice”).

In a June 6, 2025 notice (the “June Notice”), the USTR proposed changes to Annex III (fees on non-US car carriers) and Annex IV (restrictions on US LNG exported on non-US vessels). Among the proposed changes were:

  • the Annex III fees on non-US built car carriers were proposed to be changed from $150 per Car Equivalent Unit to $14 per net ton; and
  • the Annex IV restriction on LNG exports for failure to comply with the requirement that a certain percentage of US LNG be exported on a US-built vessel was proposed to be eliminated.

In an October 10, 2025 notice (the “October Notice”), the USTR made further changes to the port fees and restrictions. Among the changes implemented were:

  • the Annex III fees on non-US built car carriers were changed from $150 per Car Equivalent Unit to $46 per net ton (far greater than the $14 per net ton that was proposed in the June Notice);
  • the Annex IV restriction on LNG exports for failure to comply with the requirement that a certain percentage of US LNG be exported on a US-built vessel was eliminated, as per the June Notice.

The October Notice also proposed additional amendments to the port fees. These changes remain under review and have not yet been finalized. Among the proposed amendments are:

  • an LPG tanker that was “ordered before April 17, 2025, and is in service and entered into a long-term time charter agreement (that is, of 20 years or more) prior to December 31, 2027,” would be considered owned and operated by the time charterer for purposes of Annex I. As a result, an LPG tanker with a Chinese registered owner and/or disponent owner under a bareboat charter would not be subject to the fees on Chinese owned or operated vessels, as long as the long-term time charterer from the disponent owner is not a Chinese or Chinese-owned entity; and
  • the Annex III fees on non-US built car carriers would not apply to US-flagged vessels of up to 10,000 deadweight tons. This exception will expire on April 18, 2029 unless renewed.

To alleviate uncertainty regarding the proposed amendments, the October Notice permitted port fees on vessels that would be subject to the proposed amendments (i.e. LPG tankers and car carriers falling within the scope of the amendments) to defer payment until December 10, 2025. It is unclear whether the payment would still be owed if the proposed amendments are not adopted.

USTR Port Fees – Clarifications and Questions

The subsequent USTR notices and guidance have attempted to clarify some of the open questions regarding the port fees. However, several questions remain.

  1. For purposes of Annex I port fees on vessels owned by a Chinese entity in the case of a Chinese lease financing, is the ‘owner’ the registered owner/lessor or the disponent owner/lessee?

While the USTR notices have provided no further guidance as to the identity of the ‘owner’, guidance released by the US Customs and Border Protection (“CBP”) port operators for the ports of New Orleans and Houston state that “[t]he vessel owner(s) will be determined by the vessel’s Registry (REG).” While this guidance applies only to the ports of New Orleans and Houston and not other ports, the guidance suggests that in the case of a sale-leaseback financing with a Chinese lessor, the port fees would be imposed, notwithstanding that the beneficial owner of the vessel may have no Chinese nexus. The guidance further suggests that in the reverse case, where the registered owner is not a Chinese entity but the beneficial owner is a Chinese company, the port fees on Chinese owners would not apply (although the fees may still be owed if the Chinese company is the ‘operator’). 

  1. For purposes of Annex II port fees on Chinese-built vessels, does the small vessel exception apply to tankers?

The April Notice exempted small vessels from the port fees on Chinese-built ships. For this purpose, a small vessel was defined as a “vessel with a capacity of equal to or less than: 4,000 Twenty-Foot Equivalent Units, 55,000 deadweight tons, or an individual bulk capacity of 80,000 deadweight tons.” This led to some uncertainty, since the meaning of “individual bulk capacity” is unclear. The reference to ‘bulk’ may have suggested dry bulk vessels, although tankers carry liquid cargo in ‘bulk’.

“Unless the suspension is lifted or modified, no such port fees will be owed during this period.”

The October Notice ‘clarified’ that the small vessel exception for vessels with individual bulk capacity of 80,000 deadweight tons may apply to both liquid bulk and dry bulk vessels. The notice listed several examples of both dry bulk vessels and vessels that can carry both dry bulk and liquid bulk cargo, but no pure tankers. The notice also did not clarify the meaning of ‘individual bulk capacity’. The reference to liquid cargo seems to suggest that the 80,000 deadweight ton limit applies to tankers as well, although the lack of examples and omission of the term ‘tanker’, as well as the lack of a definition of ‘individual bulk capacity’, may continue to result in uncertainty.

Summary of the Suspensions

Both the USTR port fees and the Chinese port fees are suspended pursuant to USTR and Chinese Ministry of Transport notices, with the suspension scheduled to last from November 10, 2025 through November 9, 2026. Accordingly, unless the suspension is lifted or modified, no such port fees will be owed during this period. The suspension of US port fees applies to fees on non-US car carriers under Annex III, notwithstanding that Annex III fees apply to all non-US car carriers equally, regardless of whether they have a Chinese nexus. Barring further extension or amendment, both sets of port fees will once again be owed for US and Chinese port calls beginning November 10, 2026. There is no provision for refund of fees incurred for port calls between October 14 and November 9, 2025.

Related: Law firm WFW on USTR 301 and retaliatory measures in China

 

Photo credit: Chris Pagan on Unsplash
Published: 24 November, 2025

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.
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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.
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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.
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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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