Update 14 October 2025

The Chinese Ministry of  Transport issued Implementation measure this morning. At this stage, the penalties appear to be less severe than previously anticipated by Skuld. Skuld has been informed that if the information is not provided, or is incorrect the maritime authority will request the agent or owner/operator to correct or supply the relevant information.

If special port charges are not paid, vessel entry or clearance may be denied. If the vessel departs China without payment, it will be required to pay these charges on its next visit to China.

This update has also been incorporated into the article text.

A guide for members on the recent Announcement 54 (‘’Announcement 54’’) by the Chinese Ministry of Transport about special port charges on United States vessels

Background to Announcement 54

On 10 October 2025, China’s Ministry of Transport announced that, starting 14 October, special port charges will apply to United States (U.S.) vessels at Chinese ports. This measure responds to the U.S. port service fees, effective the same day, targeting Chinese-owned, operated, flagged, or built ships following a Section 301 investigation by the USTR into China’s maritime, logistics, and shipbuilding sectors.

Which vessels may be caught by the regulations?

Announcement 54 sets out five categories listed below.

Skuld is grateful to Wang Jing & Co for their guidance on Announcement 54. This guidance explains possible interpretations of these categories and they observe that… ; the Announcement adopts a fourfold criterion of “ownership + control + nationality + place of construction, resulting in a very broad scope of application.”

What fees will apply?

The special port charges will apply as set out in the table below and will be collected on a per-voyage basis. They will rise over time.

Note: (fractions of one net ton shall be counted as one net ton):

Payment

• When to pay: The special port charges become effective on October 14, 2025.
• Where to pay: The special port charges are paid at the first Chinese port of call during a voyage.
• How it’s charged: The fee is charged per voyage, and a vessel will not be charged again at subsequent ports of call on the same voyage.
• Annual limit: Each vessel is subject to the special port fee for no more than five voyages within a year.

When does payment need to be made?

The maritime administration authorities of the respective port of call will collect the special port charges. It is recommended that payment be made before the vessel leaves the first port of call in China.

How will this be implemented?

Ship operators, masters, or local agents are likely responsible for reporting to local authorities. The Maritime Administration will charge special port fees at Chinese ports, with details expected soon. Required information about chartering may need to be submitted several days before arriving at or departing from the first Chinese port to confirm whether the vessel is subject to Announcement 54.

Skuld is aware that the Chinese Ministry of Transport plans to establish specific implementation measures. This section will be updated once those measures become available.

What will happen if a wrong declaration is made for the purpose of Announcement 54?

The exact range of action the local authorities may take is not entirely clear, however, advise received recently by the Skuld suggests that if an owner and operator has a US Nexus which is sufficient for the purposes of Announcement 54 and that is not appropriately declared to the local authorities it could result in suspension of service, refusal of port entry, delay to the vessel while the authority investigates, penalties and possible detention of the vessel.

The Chinese Ministry of Transport issued Implementation measure on 14 October. At this stage, the penalties appear to be less severe than previously anticipated by Skuld. Skuld has been informed that if the information is not provided, or is incorrect the maritime authority will request the agent or owner/operator to correct or supply the relevant information.

If special port charges are not paid, vessel entry or clearance may be denied. If the vessel departs China without payment, it will be required to pay these charges on its next visit to China.

Will the special port charges apply to US bareboat charterers?

The special port charges will likely apply to US bareboat charterers, as the definition of operators in China includes bareboat charterers.

Will the special port charges apply to financial leases with a US Nexus?

The special port charges may apply to financial leases if US stakeholders have at least 25% ownership, voting rights, or board membership and/or beneficial ownership or substantial control of the shipowners or operators. This includes vessels owned by entities where combined US interests meet the threshold, even though in a consortium. Wang Jing & Co note that definitions of US Nexus and ownership are broad and complex, so members should seek specialised legal advice if affected.

Will the special port charges apply to Listed on the NY Stock Exchange?

Wang Jing & Co state that ..’’merely being listed on the New York Stock Exchange would not, by itself, constitute a U.S. enterprise under this definition.’’.

However, if the entity listed on the NY Stock Exchange has other US nexus ties Skuld recommends that further advice be taken, given the complex nature of how any assessment of US nexus will be determined.

Will the special port charges apply to US charterers and/or ship managers with a US Nexus?

The definition of ship operators does include bareboat charterers; however, its applicability to other types of charterers or ship managers remains unclear. Skuld understands that the Chinese Ministry of Transport will issue additional provisions in the coming days.

What impact could the special port charges have on existing charter parties?

Skuld recommends that members check their charter party provision to see if any clause specifically deals with obligations to pay port charges.

Who will be responsible for the special port charges under English law with a standard time charterparty?

In most cases, the special port charges are likely to be charterers’ responsibility on the basis that they should either be treated as “port charges” or expenses recoverable by owners under the implied or express indemnity against the consequences of complying with charterers’ orders as to the employment of the vessel (namely to trade the vessel to China).

However, the position is not straightforward, bearing in mind that the special port charges are only payable due to the special characteristics of the vessel[2].

There may, of course, be particular provisions in the charterparty which make it clear that the special port charges are for owners’ account or for charterers’ account.

Skuld recommends that members contact their usual claims handlers for assistance regarding the special port charges for further guidance.

Who will be responsible for the special port charges under English law under a standard voyage charterparty?

Under most standard voyage charterparties, it is likely that owners/disponent owners (not charterers) would be responsible for the special port charges but the charterparty may contain provisions which alter the position; for example, Clause 12 of the Asbatankvoy Form provides that “Charterers are responsible for any unusual taxes, assessments and governmental charges which are not currently in effect but may be imposed in the future on the Vessel”.

Would the imposition of the special port charges frustrate a charterparty under English law?

The conventional view is that the imposition of special port charges would not frustrate most Charterparties because, as a general rule, increased expense is not sufficient to frustrate a contract (even where the expense is such as to make performance of the contract a commercial disaster for one of the parties)[3]. However, the law on frustration is still developing, and it has been suggested that a contract may be frustrated where the additional expense is so extraordinary that it would be unjust to hold both parties bound[4].

Therefore, where the special port charges are extremely high[5], there may be a respectable argument that the Charterparty is frustrated. However, in the absence of direct authority and the fact that different Courts or Tribunals may hold different views as to what is “unjust”, there would be considerable uncertainty as to the prospects of success.

How can owners and charterers protect themselves under future charterparties?

Skuld recommends that owners and charterers have clear provisions in their charterparties regarding responsibility for the special port charges.

For purposes of a time charterparty, the BIMCO USTR Clause could be amended to deal with the special port charges. However, charterers should, in any event, check, prior to concluding the fixture, whether the vessel will be subject to the special port charges (as the BIMCO Clause only provides for owners to provide this information (if requested) after the charterparty is fixed.

For purposes of a voyage charterparty, Intertanko have a voyage charter clause that could also be adapted. If owners require charterers to pay the special port charges, they could insert a very specific clause to that effect. Conversely, if charterers do not wish to be responsible for special port charges, they should carefully check their charterparties to make sure that there are no clauses (such as Clause 12 of the  Asbatankvoy) which might expose them to such responsibility.

Skuld claims handlers are monitoring this developing situation. If members have any queries, they should contact their local claims handler for assistance.