A new port fee in China, specifically targeting vessels linked to the United States, has begun to reshape the Asian cruise market. This policy, implemented by China's Ministry of Transport, has already led at least one major American luxury cruise line to alter its itinerary to avoid significant charges. The move is creating new opportunities for Chinese and other non-U.S. cruise operators to expand their presence in the region.
Key Takeaways
- China introduced a new port fee for U.S.-linked vessels.
- The Riviera cruise ship diverted from Shanghai to avoid an estimated $1.64 million fee.
- Fees can reach up to 189 million yuan ($26 million) per voyage for larger ships by 2028.
- U.S. cruise lines, which dominate the global market, face significant pressure.
- Chinese cruise operators are rapidly expanding their domestic and regional routes.
New Chinese Port Fee Targets US-Linked Ships
China's Ministry of Transport announced a new "special port fee" on Tuesday, targeting ships linked to the United States. This policy took effect immediately. The fee structure starts at 400 yuan (approximately $56) per net ton and is set to increase annually. By April 2028, the charge will reach 1,120 yuan (approximately $156) per net ton.
Each vessel will incur this fee for a maximum of five voyages per year. The charge applies only at the ship's first port of call in China. Cruise ships, which have a much higher net tonnage compared to cargo vessels, are disproportionately affected by these new charges.
Fact Check
- Initial Fee: 400 yuan per net ton.
- Maximum Fee by 2028: 1,120 yuan per net ton.
- Voyage Limit: Maximum five voyages per year per vessel.
- Application: Levied only at the first Chinese port of call.
The Riviera Reroutes to Avoid Charges
Oceania Cruises' The Riviera, a luxury vessel with a capacity of 1,250 passengers, has already changed its planned itinerary. Operated by Miami-based Norwegian Cruise Line Holdings Ltd., the ship dropped Shanghai from its Asia schedule. This decision came after the company chose not to pay the new special port fee.
Sources close to the matter informed Caixin that The Riviera would have faced charges of approximately 11.67 million yuan (about $1.64 million) for docking in China. The ship, which began its journey from Seattle on September 18, was originally scheduled to arrive in Shanghai on October 15. Instead, it was diverted to Busan, South Korea.
"The scale of the new fees could effectively drive American cruise operators out of China."
Potential Impact on Larger Vessels
The financial implications of this new policy are substantial, especially for larger cruise ships. For instance, Royal Caribbean Group's Spectrum of the Seas, with a net tonnage of 168,402, would face a charge of roughly 67.36 million yuan (about $9.4 million) for a single voyage this year. By 2028, this cost could rise to nearly 189 million yuan (about $26.4 million) per trip.
Royal Caribbean stated it is currently evaluating whether to pay the new fees. The company has not yet confirmed any changes to its schedule. The Spectrum of the Seas currently operates a route between Shanghai and Okinawa and was expected to return to Shanghai soon.
Background Information
The new port fee arrives amid trade tensions between the United States and China. Donald Trump's tariff policies have created economic challenges for U.S.-based companies operating in Asia. This new fee specifically targets U.S.-linked vessels, adding another layer of complexity for American cruise lines.
Pressure on US Cruise Lines and Market Dominance
Industry experts believe that U.S. cruise lines, which hold a dominant position in the global market, will experience the most significant pressure from this new policy. American operators like Carnival, Royal Caribbean, and Norwegian Cruise Line collectively account for more than 75% of the world's total cruise capacity.
An experienced cruise industry expert suggested that the magnitude of these new fees could lead American cruise operators to withdraw from the Chinese market. The expert noted that Disney Cruise Line, which had plans for future Shanghai routes after its initial Asia deployment, is now unlikely to proceed with those plans.
Impact on "Visiting Port" Cruises
A Shanghai port official indicated that the new fee would primarily affect "visiting port" cruises. These are typically long-haul or around-the-world vessels that make brief stops in China. Such cruises are often operated by U.S. companies and cater to high-end international tourists.
"They bring high-end international tourists, so their numbers are small but their influence is large," the official explained. Shanghai's transport authorities reportedly sought exemptions for cruise ships, but no decision has been announced.
Chinese Operators Expand as Foreign Presence Shifts
Data from the first half of 2025 shows a continued recovery in China's cruise sector. Homeport passenger traffic reached 1.28 million, marking a 50% increase year-on-year. However, international visitor arrivals through visiting cruises saw a 43% drop, totaling 57,000.
Currently, only two foreign cruise companies operate in China without being directly impacted by the new policy or are assessing its effects:
- Italy's MSC Cruises, with its vessel MSC Bellissima (172,000 tons), which sails from Shanghai and is unaffected.
- Royal Caribbean's Spectrum of the Seas, which falls under the new fee structure.
Meanwhile, Chinese operators are rapidly expanding their fleets and routes. State-backed Adora Cruises, a joint venture involving several major central enterprises, now operates two ships:
- The Adora Magic City (135,500 tons), China's first domestically built large cruise ship.
- The Adora Mediterranea (86,000 tons).
Together, these vessels have carried over 1.1 million passengers since early 2024.
Growing Domestic Competition
Other Chinese players are also increasing their market share. These include:
- Astro Ocean International Cruise, a joint venture between Cosco Shipping Group and China Tourism Group, which operates the Piano Land.
- A joint venture between China Merchants Shekou Industrial Zone Holdings and Viking Cruises, which runs the CN-Yidun.
- Privately-owned Shanghai Blue Dream International Cruises and Tianjin Oriental International Cruise, each managing multiple midsize vessels.
Despite the growth, a state-owned cruise executive noted that competition in China's cruise market remains intense, with thin profit margins. However, if American operators withdraw, domestic lines could significantly gain market share and potentially expand into broader Asia-Pacific routes.
"Once U.S. cruise companies retreat, it opens the door for Chinese and non-U.S. operators to strengthen their foothold," another industry insider commented. This shift could fundamentally change the dynamics of the Asian cruise industry in the coming years.
