Port Fee Policy Raises Concerns for European and Asian Carmakers
European and Asian automotive manufacturers are experiencing significant challenges due to new U.S. port fee policies. Already impacted by tariffs imposed by the former President Donald Trump, these companies now face increased shipping costs to the United States. The new policies threaten to disrupt the $150 billion American seaborne car import market.
As of October, car carrier operators are required to pay $150 for each vehicle they can transport into the U.S. annually, potentially adding about $1.8 billion in costs to the sector according to Clarksons Research. This development follows the U.S. Trade Representative’s (USTR) decision in mid-April to introduce a universal fee on non-U.S. built vessels accessing American ports, creating uncertainty for shipping industries in Europe, Japan, and South Korea.
Lasse Kristoffersen, CEO of Wallenius Wilhelmsen, a leading vehicle shipping line, expressed that these additional costs would ultimately be passed on to carmakers, and eventually consumers. The uncertainty caused by the fee is obstructing car production, delaying export decisions, and affecting parts sourcing.
The global seaborne car trade, valued at around $600 billion last year, encompasses a fleet of 836 specialized vessels. Under the new fee structure, a large vessel operating in the US might bear costs of up to $1.2 million per voyage, as noted by the World Shipping Council, which states these vessels can carry up to 8,000 cars.
Carmakers are already dealing with 25% tariffs on foreign-made vehicles brought into the U.S., leading companies like Audi, Jaguar Land Rover, and Aston Martin to halt shipments due to the levies.
Mitsui OSK Lines, a major global shipowner, expressed concern that the U.S. port policy could significantly affect the car industry’s global supply chain. Höegh Autoliners’ CEO, Andreas Enger, mentioned in late April that the new costs would have to be shared with customers, attributing uncertainty to the tariffs’ impact on customers and trade flows.
In 2024, the car carrier industry moved a record 29 million vehicles, with 4.6 million destined for the U.S. Efforts to counter Chinese dominance in commercial shipbuilding began under President Joe Biden’s administration. An investigation was launched last year into alleged unfair Chinese economic practices in shipbuilding and maritime logistics.
A bipartisan group of U.S. lawmakers reintroduced the "Ships for America Act" to revitalize the U.S. shipbuilding industry. According to USTR, China’s shipbuilding market share has grown from negligible levels in the 1990s to over 50% in 2023. Chinese ownership of the global commercial fleet has increased to more than 19% by early 2025.
The new measures aim to boost domestic ship manufacturing but were reduced from an earlier proposal to impose fees up to $1.5 million on ships constructed in China after warnings from U.S. exporters about higher freight rates and consumer costs.
Car carrier operators were caught by surprise with the introduction of fees targeting all foreign-built vessels, with no exemptions for frequency of calls available to other segments. The fees can be postponed for three years if operators order and receive a car carrier built in a U.S. yard during this period.
Joe Kramek, CEO of the World Shipping Council, stated that it is unrealistic to expect U.S. construction of these vessels, as U.S. shipbuilders are more focused on profitable naval contracts. Presently, only one vessel in the global fleet of deep-sea car carriers is U.S.-built. Approximately 20% of current capacity was built in China, while Japan accounts for 47% and the U.S. a mere 0.1%.
Carmakers face additional challenges as China is responsible for 86% of new vessel orders, according to Clarksons. Kramek noted that the USTR imposed unlimited fees on all car carriers, not just Chinese-operated ones, without prior notice.
Shipping groups are contesting the legal grounds for regulating non-U.S.-made car carriers, and some executives hope the fees will be revised before being implemented. Kramek questioned whether the USTR had overstepped its authority, as these measures apply to all foreign vessels despite the intention to curtail Chinese activities in the shipping market.
