DECOUPLING: China’s Shipbuilding Market Share Plummets as U.S. Port Fees Loom.

“In the first half of 2025, China’s share of newbuilding contracting fell to 52% from 72% in the previous six months. Growing concerns over USTR port fees on Chinese ships in US ports likely contributed to a decrease in contracting in China. This trend was further amplified by a drop in global ship contracting and a shift in the types of ships being ordered,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO.

The upcoming USTR port fees, scheduled to take effect in October 2025, will affect both Chinese owners and operators, as well as ships built in China. The policy does include exemptions for smaller Chinese-built vessels based on sector-specific criteria and for short haul voyages.

According to BIMCO’s analysis, global newbuilding orders measured in Compensated Gross Tonnage (CGT) fell 54% year-over-year during the first half of 2025.

But: “China’s dominant position in shipbuilding is unlikely to significantly change soon, but the country could face increasing competition in the medium term. Countries like the Philippines and Vietnam, already small-scale producers of bulkers and tankers, may boost their output, benefiting from low labor costs. Meanwhile, although the US and India currently have limited shipbuilding capacity, both governments are actively working to strengthen their domestic industries. However, even if they succeed, it will take time for them to scale up production.”