On April 17, the U.S. Trade Representative (USTR) announced a ruling that introduces phased-in service fees on Chinese-built vessels calling U.S. ports. The move aims to curb China’s dominance in global shipbuilding and promote long-term investment in American maritime capabilities.
The ruling follows a year-long investigation and two-day public hearing, during which UWL President and World Group Co-CEO Duncan Wright testified on behalf of mid-sized American businesses that would be disproportionately affected by the proposed rules.
“We’re encouraged to see the U.S. take measured steps to rebalance maritime trade,” said Wright. “For importers, the goal is clear: more stability, more options, and fewer dependencies on heavily subsidized carriers.”
🔗 Follow Duncan Wright on LinkedIn
Initial versions of the proposal were significantly broader and more aggressive. They would have targeted all Chinese-built vessels, regardless of size, ownership, or service model. Had those terms held, U.S. importers could have faced sweeping cost increases, along with the risk of sudden carrier surcharges and service disruptions across key trade lanes.
Instead, the final ruling narrowed the scope in several important ways. These revisions were influenced by industry feedback and public testimony from stakeholders like UWL.
Delayed implementation: 180-day grace period; fees begin mid-October 2025
Narrowed scope: Applies only to vessels over 4,000 TEU, with additional exemptions based on use, ownership, and trade lane*
Gradual phase-in: Fee levels will increase incrementally over three years
NVOs excluded: Applies to vessel owners and operators, not freight forwarders or BCOs
Shipper voices heard: Final scope reflects concerns raised in public comments, including UWL’s
Although the new fees won’t take effect until this fall, the potential for shifting costs and carrier behavior is already drawing attention. Large ocean carriers may look for ways to offset future fees, which could have downstream impacts.
Sun Chief Express operates vessels below the 4,000 TEU threshold, meaning:
No anticipated impact from new USTR tariffs
No changes to express transit times or capacity commitments
Continued reliability on our Vietnam–Seattle closed-loop service
For importers already using Sun Chief, this ruling quietly adds value to what’s already a premium service. As larger vessel operators face new costs, the price gap between traditional and express services could narrow, making Sun Chief not only faster and more reliable, but increasingly competitive on total landed cost.
“This ruling supports the long-term viability of entrepreneurial companies like UWL and Swire, who are taking a different approach to ocean freight by actually listening to customers, building services to fit their needs, and helping them avoid surprises and build smarter supply chains” said Chris Krawczyk, SVP of Sun Chief.
If you’re sourcing from Southeast Asia or considering a shift away from China, this is an important moment. With evolving policies, port strategies, and rate structures, staying ahead means knowing where exposure lies and how to avoid unnecessary costs.
“We designed Sun Chief to give importers a faster, more reliable alternative to the traditional carriers,” said Krawczyk. “Reliability is simplicity. Because the service operates mid-size vessels in a closed loop service with berthing guarantees, we can offer a more consistent, reliable service for U.S. importers.”
We’ll continue to monitor how tariff discussions and implementation unfold, and what they could mean for the broader transpacific rate environment. In the meantime, we’re here to help you stay agile.