King Ocean seeks exemption from US tariffs on Chinese-built ships
MIAMI, April 2, 2025 – The proposed US shipping tariff is drawing fierce opposition from King Ocean Services, which warns that federal fees on Chinese-built vessels would drive up costs, disrupt supply chains, and severely damage trade-dependent economies in South Florida and the Caribbean. The regional carrier says the measure—part of a broader investigation by the US Trade Representative (USTR)—threatens to destabilize maritime commerce across the Americas.
In a formal statement issued to customers, agents, and trade partners, King Ocean Services outlined its concerns over the proposed tariff and urged immediate reconsideration. The proposed rule—stemming from a Section 301 investigation into China’s shipbuilding practices—could introduce tariffs of up to $1.5 million per entry for any Chinese-built vessel entering a US port. Additional levies could apply to operators of fleets that include such vessels, according to King Ocean’s memo.
The company, headquartered in Miami, operates 23 vessels—seven of which were built in China—and primarily serves trade lanes connecting South Florida to the Caribbean, Central America and South America.
“We believe US interests in the trade routes of the Caribbean, Central American, and South American markets would also suffer,” King Ocean stated, adding that the fees would “increase shipping costs, disrupt trade routes, harm businesses and tens of thousands of jobs, and ultimately stifle growth.”
Carrier calls for advocacy and exemptions
King Ocean Services is urging its stakeholders and the broader maritime community to advocate against the proposed fee structure, which the company contends would disproportionately impact niche regional carriers like itself and its local competitors.
The company noted that American-built vessels—which are limited in number—are currently unable to fill the operational gaps that would emerge should Chinese-built ships be phased out or penalized. While King Ocean supports long-term efforts to revive American shipbuilding, executives emphasized that viable replacement capacity remains decades away.
“Although we support a return to American shipbuilding…that is not possible right now,” the company said. “The proposed action would…harm US businesses and consumers without having any effect on the number of American-built vessels available to us in the trade for years to come.”
Trade at risk across US-Caribbean corridors
King Ocean’s appeal is rooted in the strategic economic role South Florida plays as a commercial gateway to Latin America and the Caribbean. The company warned that disrupting this corridor with punitive trade policy could undercut a region whose economic vitality hinges on uninterrupted shipping and port access.
“Research shows that there are far-reaching implications at stake for the stability and development of the South Florida economy,” King Ocean warned. “International trade is the backbone of the region.”
Industry leaders warn that the proposed measures could lead to significant Caribbean shipping disruption, affecting everything from essential goods to regional economic stability. This stance echoes concerns already raised by Tropical Shipping, another major regional carrier, which warned that US tariffs could cripple Caribbean trade. In that earlier report, Tropical Shipping cautioned that such punitive measures would endanger food security, increase costs for island nations, and jeopardize vital supply chains. Together, these carriers are forming a unified front against trade policies they argue could upend decades of regional progress.
Policy fallout could hit small business hard
The carrier also stressed that the financial burden of the proposed tariffs would inevitably fall on small businesses and consumers, who rely on affordable and timely maritime logistics in the absence of alternative infrastructure.
King Ocean is urging the USTR to reconsider the proposed Chinese-built vessels tariff or grant exemptions to regional carriers. Executives say the policy would destabilize Florida-Caribbean trade routes, which are vital to the import-export economy and directly support thousands of jobs on both sides of the corridor.
“We can continue to foster an environment where small, home-grown American businesses can thrive,” King Ocean argued, “only if international trade can remain efficient and South Florida can maintain its standing as a critical gateway for both regional and global commerce.”
Industry analysts say the US shipping tariff marks a pivotal moment in the ongoing trade tensions between the United States and China, extending the tariff playbook into the maritime sector. While the intent is to curb unfair state subsidies and market domination by Chinese shipbuilders, companies like King Ocean insist the immediate effect will be economic harm at home.
As the investigation continues and the public comment period remains open, King Ocean is encouraging broader engagement from commercial stakeholders. The company says it will continue to advocate for its customers, employees and trade partners as the US government weighs the implications of this high-stakes decision.
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