US Suspends Port Entry Fees on Ships... Relief for Domestic Shipping and Automotive Industries

Port Entry Fees Suspended for One Year After U.S.-China Summit
Domestic Automakers and Shipping Industry Relieved of Logistics Cost Burden

The U.S. government has decided to suspend port entry fees imposed on overseas-built Pure Car and Truck Carriers (PCTC) for one year. As a result, the domestic shipping and automotive industries will be temporarily relieved from the burden of increased logistics costs.

The Office of the United States Trade Representative (USTR) officially announced in the Federal Register on November 6 (local time) that it will halt the imposition of port entry fees on overseas-built PCTCs, which was implemented under Section 301 of the Trade Act targeting China's shipbuilding and shipping industries. The suspension will be effective from November 10 of this year until November 9 of next year.

Previously, the USTR had conducted an investigation under Section 301 of the Trade Act, concluding that China had strengthened its dominance in the maritime, logistics, and shipbuilding industries through unfair policies and practices. As a result, since October 14, port entry fees have been imposed on vessels either owned or operated by Chinese companies or built in China.

Hyundai Motor Ulsan Plant Export Shipping Dock. Hyundai Motor Group

This latest decision is a follow-up measure to the agreement reached on October 30 between U.S. President Donald Trump and Chinese President Xi Jinping to mutually suspend sanctions on the shipbuilding and shipping sectors.

Since October 14, the United States had imposed a port entry fee of $46 per ton on Chinese-built vessels and overseas-built car carriers. As a result, Hyundai Glovis had to pay approximately $888,800 (about 1.27 billion won) per entry for a vessel with a capacity of about 19,300 tons and 7,000 CEU. The industry had estimated that Hyundai Glovis would incur about 200 billion won in additional annual costs.

It is an industry practice that port entry fees are borne by the cargo owner (finished vehicle manufacturers) rather than the shipping company. Hyundai Glovis had already informed its customers of the increased freight charges immediately after the fees were imposed. However, with this suspension, these related costs have effectively disappeared, and Hyundai Glovis, as well as automakers such as Hyundai Motor and Kia, will be relieved of the logistics cost burden.

Hana Securities has revised its estimate of Hyundai Glovis's port entry fee burden for 2025 from approximately 70 billion won to about 12 billion won as a result of this measure. However, Hyundai Glovis stated that it will discuss with its customers how to share the costs incurred between October 14 and November 9, before the suspension took effect.