The Strategic Shift in Global Container Shipping Amid U.S. Port Fees on Chinese Carriers

The U.S. imposition of port fees on Chinese shipping carriers and vessels, effective October 14, 2025, marks a pivotal moment in global container shipping. These phased fees—starting at $50 per net ton for Chinese-operated vessels and $18 per net ton for Chinese-built vessels, escalating to $140 and $33 per ton by 2028—aim to counter China’s dominance in maritime logistics and incentivize domestic shipbuilding [1]. While critics warn of rising shipping costs and reduced U.S. exports, companies like Cosco and OOCL are recalibrating their strategies, pivoting to emerging markets to mitigate financial risks and capitalize on shifting trade patterns. This analysis evaluates whether their investments in Southeast Asia, Africa, and South America present a compelling opportunity for investors.

Strategic Reallocations: Rerouting and Regionalization

Cosco and OOCL, both subsidiaries of China’s state-backed COSCO Group, have proactively adjusted their operations to circumvent U.S. port fees. OOCL has redirected transpacific services to Mexican and Canadian ports, while Cosco has expanded its Latin American hub in Chancay, Peru, with direct routes linking Shanghai to South America [2]. These moves align with broader industry trends toward regionalization, as companies reduce reliance on U.S.-centric trade lanes. For example, OOCL’s Transpacific Latin Pacific 8 (TLP8) service, launched in August 2025, strengthens connectivity between Asia and Mexico, leveraging resilient demand in Southeast Asia and India [3].

The financial implications of these shifts are significant. A typical Chinese-owned container vessel with 65,000 net tons would face fees of $3.25 million in 2025, rising to $8.4 million by 2028 [1]. To offset these costs, Cosco and OOCL are diversifying their fleets, with OOCL ordering 14 methanol dual-fuel vessels to meet sustainability goals and reduce long-term operational expenses [4].

Emerging Markets: Growth Amid Geopolitical Risks

Cosco’s investments in emerging markets have gained momentum as U.S. trade tensions persist. In Southeast Asia, the company acquired minority stakes in Thailand’s Laem Chabang port for $110 million, enhancing its foothold in a critical regional hub [5]. In Africa and South America, Cosco’s ports in Chancay and Piraeus (Greece) have seen throughput growth of over 30% in H1 2025, driven by increased trade volumes [6]. These markets offer attractive growth prospects, with Chinese exports to Latin America and Africa rising 11.95% and 9.53% year-on-year in 2025 [6].

However, geopolitical and regulatory risks linger. Cosco’s managing director acknowledged heightened scrutiny in Southeast Asia and South America, where local governments are wary of foreign ownership in critical infrastructure [7]. Additionally, competition for port assets remains fierce, with high bidding prices and regulatory hurdles complicating expansion plans [7].

Financial Resilience and Investor Considerations

Despite these challenges, Cosco and OOCL have demonstrated financial resilience. OOCL reported H1 2025 revenue of $4.88 billion and a net profit of $954 million, driven by optimized routes and cost efficiencies [8]. Cosco Shipping Holdings saw a 9.5% year-on-year increase in Chinese mainland services and 11.9% growth in international routes to Africa and Latin America [9]. These results suggest that their strategic pivot is already yielding returns, though long-term success hinges on navigating regulatory and geopolitical headwinds.

Investors must weigh these factors against broader industry trends. The U.S. port fees are expected to raise operational costs for Chinese carriers, potentially leading to higher freight rates and reduced profit margins [1]. However, the shift toward regional trade could create opportunities for companies with diversified networks. Cosco’s focus on green technology and OOCL’s route innovations position them to benefit from sustainability-driven demand and evolving supply chains.

Conclusion: A Calculated Bet on Regionalization

The U.S. port fees represent a disruptive force for Chinese shipping giants, but Cosco and OOCL’s strategic reallocations underscore their adaptability. By prioritizing emerging markets and investing in sustainable infrastructure, they are positioning themselves to thrive in a post-U.S.-centric trade era. While geopolitical risks and regulatory challenges persist, their H1 2025 financial performance and expanding regional networks suggest a compelling long-term investment opportunity for those willing to navigate the complexities of a shifting global trade landscape.

Source:
[1] U.S. Will Charge Chinese Shipping Companies & China-Made Ships Fees for Port Calls [https://members.asicentral.com/news/industry-news/april-2025/us-will-charge-chinese-shipping-companies-china-made-ships-fees-for-port-calls/]
[2] OOCL launches Transpacific Latin Pacific 8 (TLP8) to strengthen express linkage between Asia and Mexico [https://www.oocl.com/eng/aboutoocl/corporatemessages/2025/Pages/11Aug2025.aspx]
[3] Moving production out of China a massive task, says OOCL [https://theloadstar.com/moving-production-out-of-china-a-massive-task-says-oocl/]
[4] Orient Overseas (International) Limited Announces 2025 [https://www.oocl.com/eng/pressandmedia/pressreleases/2025/Pages/21Aug2025.aspx]
[5] Cosco Shipping Ports silent on CK Hutchison deal but commits to continued expansion [https://www.lloydslist.com/LL1154645/Cosco-Shipping-Ports-silent-on-CK-Hutchison-deal-but-commits-to-continued-expansion]
[6] COSCO SHIPPING Holdings Announced 2025 Interim [http://en.hold.coscoshipping.com/col/col25402/art/2025/art_dde89a4ab604473a9eff6507055472b6.html]
[7] COSCO facing 'challenges' with international investments amid U.S. trade pressures [https://www.reuters.com/world/china/cosco-facing-challenges-with-international-investments-amid-us-trade-pressures-2025-08-28/]
[8] OOCL Warns of Significant Impact from Upcoming U.S. Port Fees [https://www.facebook.com/marinophilippines/posts/oocl-warns-of-significant-impact-from-upcoming-us-port-feesaugust-2025-shipping-/776190491682080/]
[9] China's shipping firms lean on alliances to ride out U.S. port fee storm [https://www.scmp.com/economy/china-economy/article/3324007/chinas-shipping-firms-lean-alliances-ride-out-us-port-fee-storm]