U.S. Vehicle Carrier Operators Oppose New Port Fees on Foreign-Built Ships, Citing National Security Risks

Operators of foreign-built vehicle carriers are seeking relief from a new port fee imposed by the U.S. Trade Representative, effective October 14, 2025. The fee affects all foreign-built car carriers, including 20 U.S.-flagged vessels critical to military logistics under the Maritime Security Program. The fee, announced on April 17, 2025, aims to counter China's shipbuilding dominance but was introduced without prior consultation, potentially costing operators millions. Industry stakeholders argue it undermines military readiness and lacks procedural transparency, prompting calls for dialogue with the USTR.

A Sudden and Sweeping Fee

On April 17, 2025, the USTR announced a new port fee targeting foreign-built vehicle carriers, charging $150 per Car Equivalent Unit (CEU) of capacity. For a standard ship capable of transporting 6,000 vehicles, the fee would amount to $900,000 per port call. The policy is part of a broader initiative to counter China’s dominance in global shipbuilding and to fund a revival of the U.S. domestic shipbuilding industry.

However, the scope of the fee has stunned the vehicle carrier industry. While the original February proposal focused on China-linked vessels, the final rule applies to all foreign-built car carriers, regardless of ownership or country of origin. This includes ships built in allied nations and those operated by U.S. companies under the U.S. flag.

“The fee on the car carriers came from nowhere,” said one attorney representing affected operators, noting that the levies were not included in the February draft, leaving stakeholders no opportunity to provide feedback.

Impact on Military-Linked Vessels

Among the most controversial aspects of the new fee is its application to 20 U.S.-flagged and U.S.-crewed vehicle carriers enrolled in the Maritime Security Program. These vessels are contractually obligated to support the U.S. military during times of war or national emergency, transporting heavy equipment such as tanks, helicopters, and aircraft.

Operators argue that imposing the fee on these ships undermines military readiness. “Vehicle carriers are vital to U.S. military logistics,” said a source familiar with the MSP fleet. “Taxing them like commercial imports ignores their strategic role.”

Companies operating these vessels include Florida-based American Roll-On Roll-Off Carrier Group (ARC), a subsidiary of Wallenius Wilhelmsen, and New York-based Liberty Global Logistics. Both firms declined to comment on the record, while a spokesperson for Maersk Line Ltd., another MSP participant, said the company is reviewing the USTR’s decision and preparing for various outcomes.

Notably, other vessel types in the MSP—such as container ships and fuel tankers—are exempt from the new fees, raising questions about the consistency of the policy.

Industry Backlash and Legal Concerns

The World Shipping Council (WSC), whose members include major vehicle transporters like Wallenius Wilhelmsen, warned that the fees would affect nearly every car carrier in operation and could lead to unintended consequences. The WSC declined to elaborate further, but legal experts say the policy may overreach the USTR’s mandate.

Attorneys representing vehicle carrier operators argue that the fees are being levied on ships built in countries that were not part of the Biden administration’s fast-track investigation into China’s maritime practices. “This is a broad-brush approach that penalizes allies and U.S.-flagged operators alike,” said one attorney, who requested anonymity due to fear of reprisal.

The legal community is also concerned about the lack of procedural transparency. Because the levies were not included in the original February proposal, vehicle carrier operators were denied the opportunity to submit public comments or request exemptions.

Financial Burden on Operators and Customers

The financial implications of the new fee are significant. With only 39 of the 1,466 vehicle carriers in global operation built in the United States, the vast majority of ships calling at U.S. ports will be subject to the charge. For high-capacity vessels making frequent port calls, the cumulative cost could reach tens of millions of dollars annually.

These costs are expected to be passed on to customers, many of whom are already grappling with the 25% auto tariffs imposed during the Trump administration. “This is a double hit for the auto industry,” said one industry representative. “First tariffs, now port fees—it’s a compounding burden.”

Calls for Relief and Dialogue

In response to the policy, attorneys and industry groups have requested meetings with the USTR to discuss potential exemptions or revisions. As of April 25, the USTR has not confirmed whether it will meet with vehicle carrier representatives.

The lack of engagement has only deepened frustration within the industry. “We’re not opposed to supporting domestic shipbuilding,” said one operator. “But this policy punishes the very vessels that serve U.S. interests, both commercially and militarily.”

References

• Vehicle Carriers Seek Relief from USTR Port Fees
• Vehicle carriers seek relief from broad US port fees
• Vehicle carriers seek relief from broad US port fees
• Vehicle carriers seek relief from broad US port fees
• US' Wide-Ranging Fees on Chinese-Linked Vessels Set to Increase Costs and Cause Disruptions in Maritime and Shipbuilding Industries