New port fees raise export costs

By Scout Nelson

A recent policy report from the Agricultural Risk Policy Center (ARPC) at North Dakota State University warns of major cost increases for U.S. agricultural exporters. These costs come from a new federal port fee targeting foreign vessels operated by Chinese companies or built in China.

The policy, finalized by the Office of the U.S. Trade Representative in April 2025, falls under Section 301 of the Trade Act. It introduces phased-in port entry fees designed to respond to unfair subsidies and trade practices in China’s maritime industry.

According to the ARPC’s report titled Assessing the Costs to Agricultural Exporters of Section 301 Annex 1 and 2 Fees, these new fees could have added $2.3 billion to shipping costs in 2024 alone. By 2028, costs may reach $6.2 billion if the full fee schedule is implemented.

U.S. agricultural exports such as corn, soybeans, and wheat are most affected. These grains are usually shipped via dry bulk vessels, many of which fall under the new fee rules.

“Even with exemptions for short routes and empty vessel arrivals, dry bulk exporters face real exposure,” said Jiyeon Kim, lead author and research economist at ARPC. “The policy increases per-unit costs at the port level, and those effects are likely to be passed down to producers in the form of lower farmgate prices.”

Annex 1 fees could add five to seven cents per bushel in export costs. That’s around 0.6% to 0.8% of the export value for these crops.

The report adds that although the final rule is narrower than earlier proposals, the burden on agriculture remains high. “This is not a marginal policy change for the agricultural sector,” said co-author Matthew Gammans. “The way the fees are structured (based on vessel tonnage and port calls) means that high-volume, low-value shipments like grain are particularly vulnerable.”

The added costs may reduce U.S. agriculture’s global competitiveness. While ship owners may shift to new vessels or flags, such changes will take time.

Photo Credit: north-dakota-state-university