Exempt or exposed: The bigger they are, the more they pay
- rorykevinproud
- May 1
- 2 min read
01 May 2025 Kpler
How far does 2,000 nautical miles get you? Far enough to exclude most regional trades from the US port fee. Countries such as Canada, Mexico, Jamaica, and others fall comfortably within this range when exporting to the US.
Market & Trading Calls
Most US dry bulk imports will be exempt from the port fee under the 17 April revision, particularly smaller vessels on shorter routes.
Under Annex II, the fee will only be assessed for imports upon the intersection of two criteria: vessel size and voyage distance relative to the US port.
No exemptions apply to trades (import and export) affected under Annex I, so any vessels operated and/or owned by a Chinese-linked entity are liable.
The blow now falls by degrees and only a fraction of US dry bulk imports is liable to the US port fee after the 17 April revision. This makes the impact more quantifiable.
The United States Trade Representative (USTR)’s initial proposal, which was agnostic to voyage distance, vessel size, or operating profile, would have triggered fees in both trade directions.
Most voyages will be exempt
Most dry bulk imports, especially on geared vessel segments on shorter routes, will be categorised under one or more exemptions under Annex II of the USTR’s Section 301. A Chinese-built dry bulk vessel will not be subject to a fee if it:
Is equal to or below 80k dwt
Arrives at a US port from a foreign location less than 2,000 nautical miles away
Arrives in ballast
Is enrolled in Maritime Administration (MARAD) programmes or US-flagged
Sails on routes between the US, the Caribbean, the Great Lakes or US territories
How far does 2,000 nautical miles get you?
It is far enough to exclude most regional trades. A dry bulk vessel must exceed 80k dwt and sail more than 2,000 nautical miles from a foreign port to be liable. So, if only one condition is met, it is not subject to a fee. Countries such as Canada, Mexico, Jamaica, and others described below fall comfortably within this range when exporting to the US. The list of countries is not exhaustive.
In terms of ton-miles, Canadian dry bulk exports will be the largest beneficiary of the short sea trade.
2024 US dry bulk imports by voyage: At 1.5%, only a small portion and specifically targeted dry bulk import, will be impacted.
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