New U.S. port tax unlikely to have much effect on China's shipbuilding momentum

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New U.S. port tax unlikely to have much effect on China's shipbuilding momentum

Published: 13 Oct. 2025, 16:53

Audio report: written by reporters, read by AI

A large crane and a ship under construction are seen at Hanwha Ocean’s Geoje yard in Geoje, South Gyeongsang on Aug. 26. [NEWS1]

The United States will begin imposing a new port tax on Chinese-built vessels starting Tuesday, a move Korea’s shipbuilders initially welcomed in hopes of gaining a competitive edge — but those expectations have yet to materialize.

The Office of the U.S. Trade Representative (USTR) announced earlier in October that it would impose a $50-per-ton entry fee on vessels operated or owned by Chinese companies when they dock at U.S. ports. The fee will increase in stages until it reaches $140 per ton by 2028.

Despite high hopes in Korea’s shipbuilding sector, global shipping giants continue to choose Chinese shipyards. Structural advantages like lower prices and stronger financial backing remain in place.

Chinese shipbuilders accounted for 6.94 million TEU in global container ship order backlog in the first half of this year, or 74 percent of the total, according to Clarkson Research on Monday.

Korea followed with 1.98 million TEU, or 21.1 percent. Although Korea secured some high-value orders, China continues to lead the market.

Industry insiders say Chinese shipbuilders offer up to 20 percent lower prices than Korean competitors for similar vessels. In addition, Chinese yards provide “package-type financial support,” including loans from state-run banks and government-backed delivery guarantees. These conditions give shipowners strong incentives to choose China.

MSC, the world’s largest shipping company, ordered 20 ultra-large container ships from five Chinese shipyards in July. CMA CGM, the third largest, placed an order for 10 ships worth $2.1 billion with Dalian Shipbuilding last month. Korean shipbuilders submitted bids but lost in both cases.

Observers say the U.S. port tax is unlikely to have a significant impact. Major carriers are already reviewing “detour strategies,” such as deploying Chinese-built ships on non-U. S. routes while using Korean or Japanese-built vessels for U.S.-bound services. China’s state-run Cosco is reportedly in talks with France’s CMA CGM and Taiwan’s Evergreen on ship swaps.

A large crane and a ship under construction are seen at Hanwha Ocean’s Geoje yard in Geoje, South Gyeongsang on Aug. 26. [NEWS1]

Meanwhile, Maersk, the world’s second-largest shipping firm, is heating up the competition between Korean and Chinese yards with a new order worth up to 4 trillion won ($2.8 billion).

Maersk plans to order up to 12 LNG dual-fuel ultra-large container ships, with a total contract value estimated between $2.5 billion and $2.8 billion.

Since last year, Maersk has pushed to convert its fleet to environmentally friendly ships powered by LNG, methanol and ammonia as part of its decarbonization strategy.

In the upcoming bid, both Korean and Chinese shipbuilders are short-listed. The company is reportedly prioritizing technology and fuel efficiency over price.

“Maersk’s project is not just about securing a contract,” said Yang Jong-seo, chief researcher at The Export-Import Bank of Korea. “It will be a test of whether K-Shipbuilding can prove its value through green technology.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]