New port fees introduced by the U.S. and China on October 14 have triggered a sharp drop in the availability of cargo ships, leading industry leaders to warn of potential higher consumer prices in both countries.
The core issue is that shipping companies are removing China-linked vessels from U.S. routes and U.S.-linked ships from Chinese schedules to avoid the new retaliatory charges. This has caused delays, reduced cargo volumes, and disruptions in port operations. Adding to the alarm, shipping companies lack clarity on how China will determine ship ownership or control when calculating its fees.
The intense situation is already showing effects in the market. Seanergy Maritime Holdings CEO Stamatis Tsantanis noted a definite reduction in the number of ships able to dock at Chinese ports and warned that the new costs will likely be passed on to consumers. This is supported by an analyst's report that the Shanghai Containerized Freight Index (SCFI) surged by 12.9%—a four-week high—due to substantial rate increases on transpacific routes following China's fee announcement.
In response, major container shipping companies like Maersk, Hapag-Lloyd, and CMA CGM have begun adjusting their routes. For instance, Maersk and Hapag-Lloyd informed clients that their U.S.-flagged vessels, the Maersk Kinloss and Potomac Express, will skip the Chinese port of Ningbo. Ardmore Shipping CEO Gernot Ruppelt echoed concerns, stating the new regulation will "cause more interference to vessel operations and trade."
The conflict is also severely impacting the Very Large Crude Carrier (VLCC) market. China's retaliatory fees on U.S.-linked ships have significantly raised rental rates for VLCCs transporting crude oil to China, the world's largest importer. While Chinese-built ships are currently exempt, the fees have reduced the available pool of tankers. Benchmark VLCC rates hit a two-week high shortly after the fees were introduced, leading Consultancy Energy Aspects to increase its estimate for fourth-quarter VLCC rates, projecting further upward pressure if the disruptions worsen.
October 2025, Cryptoniteuae