October Freight Update: "Frightfully" Fast Shipping!

As Q4 picks up steam, freight markets are showing signs of stabilization — but not without a few plot twists.

The United States Trade Representative announced new port entry fees will apply to the vessels that are Chinese owned, operated or built when coming to the US Ports. All these fees were scheduled to take place on the 14th of this month, with costs at $50 per net ton, for owned & operated, and $18 per net ton for built vessels looking to hold these fees into 2028.

As this was occurring, China's Ministry of Transport announced a similar port entry fee on United States owned, United States Operated, and United States built or flagged vessels arriving in Chinese port effective the same date.

Unfortunately, these fees are capacity and tonnage based, so vessels in larger sizes are incurring larger fees. We have not yet seen the full impact that may be yet to come and await to see the outcome of the operational & market responses. We are staying alert to the difference in the environment and considering diversity in routes, ports in which we can deliver to, and evaluating lead time, if they do potentially increase.