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Report: China shipyards orders are strong despite US port charges on China vessels

A new report by the Center for Strategic and International Studies shows that global shipping companies continue to place commercial vessel orders with Chinese shipyards despite the U.S. targeting these ships with port charges aimed at countering China’s maritime dominance.

According to CSIS's analysis of S&P Global's data, released on Wednesday, Chinese shipyards took 53% of global ship orders in terms of tonnage for the first eight-month period of 2025.

CSIS reported that the fees were on par with the full-year levels of 2023 before the U.S. Trade Representative launched the China maritime investigation, which paved the path for the port charges.

Brian Hart, fellow at the China Power Project of CSIS and author of the report, said that "Shipping Companies are largely continuing with business as usual." "At this point, it does not appear that these policies will result in a significant move away from China."

China's share in global ship orders based on tonnage has jumped from 67% to 73% by 2024. This suggests that shipowners are trying to lock down contracts before possible USTR restrictions take effect.

From October 14, ships that are built in China, or are operated or owned Chinese entities will be required to pay a fee when they arrive at their first US port.

Analyst estimates predict that this fee will rise every year until 2028.

The U.S. is attempting to boost domestic shipbuilding in order to counter China's increasing naval and commercial power.

It's a big task to catch up with China’s state-supported shipsyards.

Analysts in the military and industrial sectors said that last year, U.S. shipyards produced fewer than ten commercial vessels, while China built well over 1,000.

China has risen to No. 1 in the world over the past two decades. China has risen to the No. 1 spot in the world and its largest shipyards are involved with both commercial and military projects.

The U.S. Navy fiscal year 2025 plans said that U.S. shipbuilding had experienced a near total collapse. It called for a long-term revival of this industry to support Navy shipbuilding.

CSIS reported that MSC, the world's largest containership operator, has placed orders for 12 vessels to be constructed in China after USTR announced port fees in April of this year.

MSC of Switzerland, along with Hapag-Lloyd and Maersk, as well as CMA CGM have taken China-linked vessels off U.S. routes, thus limiting or eliminating the new fees.

HSBC analysts say that COSCO Shipping, a Chinese shipping company, is the most exposed to port fees in 2026 with an estimated $1.5 billion.

Donald Trump has been a champion for U.S. Shipbuilders. He seeks alliances and investment from powerful countries like South Korea. (Reporting and editing by Marguerita Choy in Los Angeles)

(source: Reuters)