DHT's Fleet Ownership and Strategic Resilience in the Face of Chinese Port Fee Increases

The U.S.-China port fee dispute, which escalated on October 14, 2025, has reshaped the economics of global shipping. Under U.S. Trade Representative (USTR) rules, vessels built, owned, or operated by Chinese entities face fees ranging from $50 to $140 per net ton by 2028, while China retaliated with reciprocal levies of RMB 400 per gross ton for U.S.-linked ships, according to a CNBC report. These measures have forced shipping companies to reevaluate fleet composition, financing structures, and trade routes. For dry bulk and crude carrier operators like DHT Holdings, the stakes are particularly high, as repeated port calls on transoceanic routes amplify exposure to these costs, as noted in a Housewares blog post.

Strategic Fleet Adjustments: Proactive Risk Mitigation

DHT Holdings has emerged as a case study in strategic resilience. In 2025, the company sold its last Chinese-built VLCCs, the DHT Lotus and DHT Peony, for approximately $55 million each. This move, which transitioned DHT's fleet entirely to South Korean-built vessels, was driven by the anticipated financial burden of U.S. port fees. Analysts estimate, in a strategic impact analysis, that a 300,000DWT VLCC could incur over $100 million in charges per port call under the proposed policy. By divesting Chinese-built assets, DHT has not only avoided immediate compliance risks but also positioned itself to capitalize on long-term fleet efficiency gains.

The company's disciplined capital allocation further underscores its strategic foresight. Proceeds from the sales were reinvested in newer, more fuel-efficient ships, aligning with global decarbonization trends and reducing operational costs, according to a CSIMarket report. This modernization effort, coupled with a share buyback program that reduced outstanding shares by 8% in 2025, has enhanced shareholder value while maintaining a robust balance sheet, as highlighted in a BeyondSpx analysis.

Operational Transparency and Corporate Governance

DHT's approach to corporate governance reinforces its commitment to long-term value creation. The company's Board of Directors, which maintains 96%+ attendance rates and no executive officers on the board, emphasizes independent oversight and accountability, as outlined on DHT's corporate governance page. Compensation structures for senior management blend fixed remuneration, performance-based bonuses, and stock vesting conditions, aligning executive incentives with shareholder interests, as shown in the 2025 annual meeting results.

Shareholder engagement has also been a cornerstone of DHT's strategy. The 2025 Annual Meeting saw 98.13% approval of the Incentive Compensation Plan and ratification of Ernst & Young as auditor, reflecting strong investor confidence, as reported in the same annual meeting results. Additionally, DHT's policy of distributing 100% of ordinary net income as quarterly dividends ensures consistent returns, even amid volatile market conditions, a point also noted by BeyondSpx.

Navigating the Fee Landscape: A Model for Resilience

The U.S.-China port fee war has created a binary choice for shipping firms: adapt or absorb costs. DHT's proactive divestment of Chinese-built assets, combined with its focus on fleet modernization and transparent governance, exemplifies a forward-looking strategy. By avoiding exposure to escalating fees and prioritizing shareholder returns, the company has insulated itself from short-term volatility while positioning for sustained profitability.

Conclusion

DHT Holdings' response to the port fee crisis highlights the importance of operational transparency and strategic agility in a fragmented global market. By reconfiguring its fleet, optimizing capital allocation, and maintaining rigorous governance, the company has demonstrated resilience in the face of geopolitical headwinds. For investors, DHT's actions serve as a blueprint for navigating regulatory uncertainty while prioritizing long-term value creation.