Navigating Port Fees Between the United States and China: Key Contractual Risks and the BIMCO Clauses
Last year, the maritime industry faced two significant, interlinked policy moves by the United States and China, each introducing special port‑related measures targeting vessels with ties to the other’s jurisdiction.
On 17 April 2025, the Office of the U.S. Trade Representative (“USTR”) announced new, revised and proposed port‑related measures affecting Chinese and other foreign‑built ships, and Chinese owners and operators calling at US ports. These are set out in:
- Annex I – Service Fee on Chinese vessel operators and vessel owners
- Annex II – Service Fee on vessel operators of Chinese‑built vessels
- Annex III – Service Fee on vessel operators of foreign‑built vehicle carriers
- Annex IV – Restrictions on transporting LNG via foreign vessels
- Annex V – Tariffs on Chinese maritime cargo‑handling equipment:
- Annex V.A – Tariffs on Chinese ship‑to‑shore cranes and other cargo‑handling equipment
- Annex V.B – Proposed tariffs on certain additional Chinese maritime cargo‑handling equipment
For more detail, please refer to our earlier articles discussing the USTR measures[1].
China responded in October 2025 with Ministry of Transportation Announcement No. 54 (2025), imposing a special port fee on vessels with a US nexus calling at Chinese ports.
Both countries have subsequently suspended their port‑fee measures for 12 months from 10 November 2025. On the US side, Annexes I–III and the Annex V.A tariffs are suspended. Annex V.B remains only a set of proposed (not implemented) tariffs, and Annex IV (LNG‑related restrictions) is still scheduled to apply from April 2028.
Although the port‑fee regimes are suspended, the suspension may be lifted at any time in 2026 and may not be renewed. Owners and operators should therefore take a proactive approach: include clear contract terms allocating responsibility and risk for any future US and Chinese port‑related charges, budget for potential liabilities, and monitor developments closely.
Contractual Implications of US Service Fees
The US Service Fees can be substantial – potentially hundreds of millions of dollars per year depending on factors such as fleet size, ownership structure, operator, and vessel origin. Clear allocation in contracts is therefore essential to avoid disputes and delays at US ports.
Key points:
- Understand the vessel’s nexus to China.
- Review ownership and operating structures.
- Consider counterparties’ ability to meet any allocated fees.
Under most time charters, port‑related costs are for charterers’ account. Under voyage charters, they are typically for owners’ account, although the freight may reflect expected port costs.
Points to consider:
- Whether the fees fall within current “port charges”, “dues” or “taxes” wording; and
- Whether to incorporate dedicated clauses (such as the BIMCO USTR Clauses) or bespoke terms.
For intermediate charterers, it is vital that fee allocation and related provisions (including time bars and indemnities) are strictly back‑to‑back throughout the charter chain.
BIMCO USTR Clause for Time Charter Parties (2025)[2]
Following the announced USTR measures, BIMCO published a USTR Clause for Time Charter Parties (2025) allocating responsibility for Annex I and Annex II Service Fees.
Default Allocation
The BIMCO USTR Clause provides that charterers are responsible for US Service Fees when the vessel calls at a US port on their orders (subclause (b)), reflecting normal time‑charter practice.
Owners’ Declarations
Under subclause (a), owners must, on charterers’ request at the time of fixture, declare whether the vessel is:
- Chinese‑owned or operated; and/or
- Built in China,
and promptly notify charterers of any change. This enables charterers to assess whether Annex I or Annex II applies and to estimate potential exposure.
When Owners Become Liable
Owners become wholly or partly liable in specified circumstances, including:
- Inaccurate or incomplete declarations / status changes (subclause (c)) – If owners’ declaration is wrong or incomplete and charterers incur unexpected fees, owners bear those amounts. If charterers reasonably expect an Annex II fee but Annex I applies, owners are liable for the uplift (the difference between the Annex I and Annex II fees). Owners also bear increases arising from post‑declaration status changes (for example, new arrangements with Chinese entities).
- Owners’ breach, off‑hire or use outside charterers’ orders (subclause (d)) – Owners are liable for fees caused by their breach, off‑hire, or deviation from charterers’ instructions. There must be a causal link. A breakdown forcing an unscheduled US port call as port of refuge, for instance, would place the fee on owners.
Payment and Remedies
The party responsible for the fee must pay it directly to the relevant US agency (subclause (e)). If the other party is compelled to pay, it is entitled to prompt reimbursement (subclause (f)).
If the charterers fail to pay any fee for which they are liable, the owners may suspend performance while the vessel remains on hire, and all resulting time lost, costs, fines, damages, and expenses shall be for the charterers’ account. The charterers shall indemnify and hold the owners harmless against all consequences, claims, and demands arising from such failure. Conversely, if the owners are in default, they shall bear all resulting costs and losses and shall indemnify, defend, and hold the charterers harmless from all related consequences, claims, and demands.
BIMCO Chinese Special Port Fee Clause for Time Charter Parties (2025)[3]
Following China’s measures announced in October 2025, BIMCO issued the Chinese Special Port Fee Clause for Time Charter Parties (2025). The clause allocates responsibility for these fees between owners and charterers. It mirrors the structure of the BIMCO USTR Clause but is adapted to the specific features of the Chinese regime. Unlike the USTR framework, the Chinese measures impose a single fee category, simplifying the contractual structure and removing the need for provisions dealing with fee increases.
Call to Action
Although the US and Chinese port‑related measures are currently suspended, this is an opportunity for the maritime industry to plan compliance, review fleet composition, and anticipate contract cost allocations. For tailored advice on how these developments may affect your operations, please contact our experienced shipping lawyers. This article provides a general overview only and does not constitute legal advice.
[1] U.S. Trade Representative's Revised Port Fee Actions
[3] Chinese Special Port Fee Clause for Time Charter Parties 2025
