Despite the Donald Trump administration in the United States imposing a port fee on Chinese ships, orders are continuing for container ships from Chinese shipyards. The prices of Chinese ships are so low that it is deemed profitable even after paying the fees.
According to the shipbuilding industry on the 9th, China once again surpassed South Korea to become the world's number one in ship orders last month. According to the British shipbuilding and shipping market analysis firm Clarkson Research, out of 3.64 million compensated gross tons (CGT) of ship orders worldwide in April, China accounted for 2.51 million CGT (69%). South Korea was in second place with 620,000 CGT (17%).
In terms of the number of ships ordered, out of a total of 75 new orders last month, China secured 51 ships while South Korea secured 15. In March, South Korea had won orders for 910,000 CGT (45%), surpassing China (800,000 CGT, 40%) to take the top spot.
On the 29th of last month, Canadian shipping company Seaspan ordered six 11,400 TEU (Twenty-foot Equivalent Unit; 1 TEU is one 6m container) container ships from Shanghai Waigaoqiao Shipbuilding (SWS). The vessels, equipped with sulfur oxide reduction devices called scrubbers, are environmentally friendly ships. They are scheduled for delivery in 2027-2028. The payment will be made in Chinese yuan. Seaspan currently operates approximately 200 ships (2.3 million TEU) and is a major shipping company.
On the same day, China’s state-owned China COSCO Shipping Corporation's container logistics company Orient Overseas Container Line (OOCL) also ordered 14 container ships, each with a capacity of 18,500 TEU. These are methanol dual-fuel propulsion container ships, and the contract scale is $3 billion (approximately 4.2 trillion won). Two shipyards owned by China COSCO Shipping Corporation will split the construction, with delivery expected in 2028-2029.
Last month, the achievements in orders for the Chinese shipbuilding industry are noteworthy as they occurred amid the Trump administration's intensified movements to exclude Chinese ships. The United States Trade Representative (USTR) announced on the 17th of last month that starting October 14, a port fee of $50 per net ton (907.2 kg) will be imposed on ships manufactured and owned by China. The fee will increase by $30 annually over the next three years. Additionally, a fee of $18 per net ton will be imposed on ships manufactured by China and owned by corporations from other countries, increasing by $5 each year for three years.
USTR noted in a draft of U.S. port fees made public in February that it would impose a fee of up to $1.5 million (approximately 2.1 billion won) on Chinese ships, but reduced the level of sanctions in consideration of the backlash from the shipping industry. The upper limit for fees per container ship has not yet been determined.
The Trump administration's regulations on Chinese ships are primarily aimed at weakening China's dominance in shipbuilding and shipping while increasing the sale of U.S. vessels. China captured 74% of the world's new ship orders last year and accounted for 56% of completed construction volume. Due to low labor costs and advantages in raw material supply chains, Chinese shipyards are reported to have overwhelming price competitiveness. Industry reports suggest that the price of Chinese container ships is only one-fifth that of American-made vessels.
Some suggest that depending on the progress of U.S.-China tariff negotiations, the U.S. port fee policy could change, allowing for continued orders of Chinese ships until final charges are imposed. Given President Trump's tendency, it is also anticipated that the port fees may not be permanent.
An industry source stated, "Overseas shipping companies that already have a significant fleet of Chinese ships or a large backlog of orders are unlikely to give up the price attractiveness of Chinese ships in a situation of considerable policy uncertainty."