Halifax — Container lines are bracing for potentially getting caught in the crossfire between China and the United States over new US port fees that will take effect in two weeks unless the White House provides concessions.

While ocean carriers, aside from China-based lines, have made moves to avoid the new fees that start Oct. 14, China's warning of retaliatory action against the US earlier this week reinjects uncertainty on the US trades.

China on Sunday implemented changes to its shipping law allowing it to levy its own special fees and restrict vessels of countries accused of targeting its shipping operations. But the amendment doesn't specify how China would determine whether a ship is considered to originate from the offending country. Such vague language means China could target not just US-flag vessels operated by Matson, but any vessel it determines was receiving US support, executives from two container lines told the Journal of Commerce.

The sources, who did not want to be identified, said they expected the Trump administration to grant concessions to China-based carriers Cosco, its subsidiary OOCL and Hong Kong-based niche carrier Hede. However, the scale of the threat to operations and the unpredictability of the White House force all ocean carriers to prepare for the worst.

'Sky is basically the limit'for China retaliation

China's“shot across the bow”in the form of the shipping law change allows the country to also target individuals and organizations, not just container operators, Lars Jensen, maritime analyst and Journal of Commerce contributor, told an industry event in Halifax on Wednesday.

“This would impact Matson dramatically, which indirectly, would impact the services between the US mainland and Hawaii, and with the vague language that they reserve the right to go after individuals or organizations, well, then the sky is basically the limit,”Jensen said at the Halifax Supply Chain Forum. Maersk and CMA CGM also operate US-flag fleets.

Cosco, OOCL and Hede are subject to higher US port fees than their peers but will remain serving the Asia-US trades. A Hede representative told the Journal of Commerce that reports it was suspending its expedited service were incorrect.

Cosco, which told its US customers to expect little change in its services and rates, has removed 52,000 TEUs in China-built tonnage since April and currently has about 215,000 TEUs on capacity deployed on US trades, according to an analysis by benchmarking platform Xeneta. On the Asia-US trade, China-built tonnage accounts for 499,000 TEUs, or 15% of the trade. Cosco and OOCL together handle the largest share of US imports from Asia, shipping nearly 16% of laden Asia imports in August.

The US Trade Representative's port fee plan was unveiled in February, just two months after the office concluded an investigation that determined China unfairly subsidizes its shipbuilding industry. The speed of the new US port fees — in place in less than 10 months — should give the industry pause, particularly in light of the Federal Maritime Commission’s current investigation into abuse of flags of convenience.

“So the question is, then, what action will the US government take? Will we see restrictions facing flag states?,”Jensen said.“We certainly don't know. But it seems very certain that [the White House will act] at some point during 2026.”