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October 20, 2025
News
USTR’s Port Fee Hike Sparks Industry Backlash: What It Means for Global Auto Logistics

A Sudden Blow to Vehicle Carriers and U.S. Exporters

In a surprise move, the U.S. Trade Representative (USTR) announced a threefold increase in port fees for all foreign-built vessels calling at U.S. ports starting October 14, 2025. The new rate—$46 per net ton, up from $14—has sent shockwaves through the vehicle carrier and roll-on/roll-off (ro/ro) shipping community, igniting concerns over higher logistics costs, reduced capacity, and weakened U.S. export competitiveness.

Industry stakeholders say the measure, intended to “correct underpricing” of service fees, will instead hurt U.S. automakers and heavy equipment producers who depend on foreign-built ships to move vehicles and machinery globally.

“USTR drops the bomb at the last minute, not realizing how badly this will hurt U.S. exporters,”
Andrew Abbott, CEO of Atlantic Container Line (Grimaldi Group)

Cost Surge Hits Major Operators

For global operators such as Wallenius Wilhelmsen and Höegh Autoliners, the revised fees translate into staggering new costs:

  • Wallenius Wilhelmsen: Up to $1 billion annually, assuming 300–350 U.S. calls per year.
  • Höegh Autoliners: Around $225 million in additional annual expenses.

Each ro/ro or vehicle carrier making its first call at a U.S. port now faces bills nearing $1.2 million per visit, capped at five calls per vessel annually.
Operators have warned these costs will inevitably be passed on to customers, intensifying downstream price pressures across supply chains.

U.S. Exporters Fear Ripple Effects

According to the World Shipping Council (WSC),U.S. manufacturers could see significant knock-on effects.

“These fees will harm U.S. automobile and tractor manufacturers who rely on vehicle carriers for both imports and $20billion in exports,”
Joe Kramek, President & CEO,WSC

Smaller U.S.-based ro/ro operators are even more vulnerable. Accordia Shipping, which runs short-sea services from Florida to the Caribbean, warned the new policy could collapse U.S. short-sea trade altogether. Under the new tariff, its3,829-net-ton vessel Minchah would owe $176,134 per call, rendering operations “economically untenable.”

Such impacts would directly hit U.S. manufacturing exports, maritime jobs, and regional supply chain resilience.

Policy Critics: “Missing the Target”

The National Foreign Trade Council criticized the blanket inclusion of all non-U.S.-built car carriers, noting it misses the original Section 301 investigation’s objective—countering China’s maritime dominance.

“Imposing broad-based penalties on all operators, including U.S. allies, does nothing to constrain China’s dominance and harms U.S. industries,”
Tiffany Smith, VP for Global Trade Policy, NFTC

Even Norwegian carriers and shipowners’ associations are voicing unease, signaling a growing diplomatic and commercial rift between Washington and allied maritime nations.

The Bigger Picture: Trade Retaliations and Supply Chain Volatility

This decision follows months of tariff escalations and port fee retaliation between the U.S. and China. With both sides now imposing mirror levies on each other’s fleets, logistics costs across transpacific and Atlantic routes are expected to climb, straining already tight capacity in the ro/ro and vehicle logistics markets.

As carriers reassess port rotations, vessel allocations, and service frequencies, shippers must prepare for:

  • Longer lead times
  • Reduced U.S. port calls
  • Higher export prices for vehicles and machinery
  • Potential rerouting to Mexico, Canada, or Caribbean hubs

Key Takeaways for Shippers

  • Expect tighter ro/ro and vehicle carrier capacity as operators cut U.S. port calls.
  • Plan for additional surcharges—many carriers will pass through the $46-per-ton fee.
  • Diversify export gateways—alternative ports or nearshoring routes may mitigate exposure.
  • Monitor retaliatory measures, especially from China and allied markets.

At Worldtop & Meta, we continue to support exporters with flexible routing, verified carrier partnerships, and real-time visibility tools—helping businesses stay agile in an evolving global trade environment.

FAQ

Q1: Why did the USTR increase the port fees so sharply?

The USTR justified the hike by stating that the original rate of $14 per net ton was “too low.” However, industry feedback suggested that such a steep increase was excessive and misaligned with the Section 301 investigation’s goal of addressing Chinese shipbuilding dominance.

Q2: Who will be most affected by this policy?

Foreign-built vehicle carriers and ro/ro operators, including those from U.S. allies like Norway and Japan, will bear the brunt. U.S. exporters—especially automotive and machinery manufacturers—will face higher logistics costs and reduced shipping options.

Q3: How will this affect U.S. exports?

The new fees could make U.S. exports less competitive, particularly in price-sensitive markets. Short-sea shipping between the U.S. and the Caribbean is at risk of collapse, reducing connectivity for American-made goods.

Q4: Are there any exemptions or caps?

The USTR capped the fee at five port calls per vessel per year, but there are no exemptions based on ownership or flag, meaning even allied carriers are included.

Q5: What should exporters and shippers do now?

  • Reassess U.S. port call dependencies
  • Explore alternate gateways (e.g., Mexico, Canada)
  • Partner with verified, cost-transparent carriers
  • Use real-time tracking to anticipate route changes

Source:https://www.joc.com/article/car-carrier-sector-slams-ustrs-decision-for-threefold-increase-in-port-fees-6096580

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