Planned US port call fees may cancel out Hong Kong refunds

The fees may have implications for Hong Kong-flagged container vessels.

A Hong Kong push to make its shipping industry more attractive by offering refunds for block ship registrations is unlikely to lure more shippers as the US plans fresh port fees of as much as $11.7m (US$1.5m) per call on vessels connected to China, according to an analyst.

“A particular risk that is being considered at present is the reported plan by the U.S. to impose tariffs on Chinese-linked vessels,” Oliver Miloschewsky, head of Shipping for Asia at global professional service firm Aon, told Hong Kong Business.

“This could have potential implications for Hong Kong-flagged vessels as well,” he said in an emailed reply to questions.

The Trump administration is planning to impose new port fees on vessels connected to China, whether by ownership, flag, or place of construction, as part of a broader strategy to cut reliance on Chinese maritime infrastructure.

If enforced, the fees could increase port call costs for affected vessels by as much as 3,000%, potentially reshaping global shipping dynamics, according to marinetraffic.com.

It noted that while only 22% of container ships calling at US ports are Chinese-built, more than 11% fly Chinese or Hong Kong flags — more than any other segment. Reflagging may be a quick fix for some operators, it added.

“The incentive in isolation is unlikely to increase the number of vessels flying the Hong Kong flag,” Miloschewsky said, referring to Hong Kong’s block registration incentives that took effect on 14 February.

Hong Kong had 2,322 registered ships at the end of 2024, with the gross tonnage increasing by 2.8% to 131.8 million from a year earlier, according to Captain Nittin Handa, director for regulatory affairs at the Hong Kong Shipowners Association.

For ships with a gross tonnage of more than 500, the registration fee is $15,000, and the annual tonnage fee for those exceeding 24,000 net tonnage is $77,500, he told Hong Kong Business.

“We believe that the ship registration fee and the annual tonnage charge of the Hong Kong Shipping Registry are highly competitive among other major ship registries,” he added.

Hong Kong is offering refunds of ship registration fees and the first-year annual tonnage charge if multiple eligible ships are registered within 24 months.

“While the scheme alone is unlikely to boost ship registrations in Hong Kong, it remains important for Hong Kong as the maritime sector continues to be a cornerstone of Hong Kong’s economy,” Miloschewsky said. 

The trading and logistics sector is 20% of the city’s economic output, with the maritime industry contributing $30b to the economy through more than 900 shipping-related companies, he said. “Strategically, Hong Kong is an important maritime gateway in the Belt and Road Initiative.”