The U.S. shipping industry has mounted a coordinated push to permanently eliminate the Section 301 port fees on China-built vessels, using the public comment window that closed on October 30 to argue that the measures should not be reinstated when the current suspension expires. The World Shipping Council (WSC) and a coalition of more than 100 organizations representing importers, exporters, manufacturers, retailers, agricultural producers, and logistics providers filed separate submissions urging the Office of the United States Trade Representative (USTR) to move beyond temporary relief and remove the fees altogether .
The fees stem from a Section 301 investigation into China's policies and practices in the maritime, logistics, and shipbuilding sectors, which the USTR initiated in April 2024. The original measures, published in April 2025 and modified in October 2025, imposed fees on maritime transport services for China-built vessels, Chinese-owned or operated ships, and foreign-built vehicle carriers. The one-year suspension, agreed as part of the November 2025 U.S.-China trade deal, was set to expire on November 9, 2026, before the USTR proposed a two-month extension running from November 10, 2026, to January 9, 2027 .
In its submission, the WSC argued that reinstating the fees would "place additional pressure on US importers, exporters and consumers without delivering meaningful progress towards strengthening the country's maritime industry." The council noted that the liner shipping sector transports approximately $1.5 trillion in U.S. trade, supports more than nine million American jobs, and contributes over $1.7 trillion to the country's GDP . The WSC also warned that port fees are not an effective instrument for rebuilding domestic shipbuilding capacity, and could instead distort shipping markets, increase freight costs, and expose U.S. exporters to retaliatory measures .
The coalition of more than 100 organizations echoed these concerns in a separate joint letter, emphasizing that China-built vessels account for a significant share of global ocean carrier capacity. This means the financial consequences would extend well beyond shipping companies directly connected to China, rippling through shipping networks, influencing vessel deployment decisions, and ultimately being passed on to businesses and consumers through higher transportation and product costs . The coalition highlighted that U.S. supply chains are already facing elevated ocean freight rates, equipment shortages, port and inland transport constraints, and rising costs for trucking, warehousing, and insurance. Reintroducing vessel fees in January 2027 would add "another layer of expense to an already strained logistics system" .
Agricultural exporters were singled out as particularly vulnerable, given their reliance on competitive transportation costs and relatively narrow profit margins. The WSC warned that higher freight charges would make American products less competitive in overseas markets while increasing the cost of imported goods for domestic consumers . The council also raised specific concerns about Annex III of the measures, which covers foreign-built vehicle carriers more broadly than the China-specific provisions. The WSC noted that the United States exported more than $95 billion worth of vehicles, machinery, and related equipment in 2025, with approximately $49 billion transported by sea, and argued that reinstating the fees could undermine the competitiveness of these exports .
The industry's push for permanent relief comes amid a broader debate about how to revitalize American shipbuilding. The coalition acknowledged the need to strengthen U.S. maritime and shipbuilding capacity, but argued that vessel fees alone will not address structural challenges including limited domestic capacity and workforce constraints. Instead, they called for a longer-term strategy based on sustained investment, government and private-sector cooperation, and continued negotiations with China and U.S. allies . The WSC similarly called on USTR to revoke Annex III in its entirety, arguing that its broad application to foreign-built vehicle carriers could disproportionately affect vessels built in allied countries .
The two-month extension provides only limited certainty for shipping companies and businesses. During the suspension period, no party will accrue liability for or be required to pay the fees on maritime transport services . However, the short duration of the reprieve—substantially shorter than the original one-year suspension—means stakeholders must prepare for the possibility that fees and duties could resume after January 9, 2027, depending on the status of U.S.-China negotiations . For the shipping industry, the message to policymakers is clear: a temporary pause is not enough to provide the certainty needed for vessel deployment decisions, chartering arrangements, and supply chain planning. The industry's position is that the fees should be terminated, not merely suspended, to stabilize freight rates and create more certainty in the market .