U.S. ocean shipping company Matson MATX.N has paid $6.4 million in port fees to China since they were implemented on October 14, CEO Matt Cox said on Tuesday.
President Donald Trump and President Xi Jinping last week agreed to put those tit-for-tat levies on pause for 12 months, starting on November 10. Media outlets in China had reported that Hawaii-based Matson, one of a handful of global shipping firms with U.S.-built and -flagged vessels, was the first to pay the fees in China.
Matson expects the U.S. Trade Representative and the China Ministry of Transport to publish specific instructions, including any refund programs, regarding port entry fees shortly, Cox said on the company's quarterly earnings call.
Early this year, the Trump administration announced plans to levy fees on China-linked ships to loosen the country's grip on the global maritime industry and bolster U.S. shipbuilding - a move vessel operators warned would disrupt trade flows and ultimately drive up costs for consumers. China retaliated with fees on ships with links to the United States, and started charging them on October 14 - the same day U.S. fees went into effect.
"This is a welcome development," Cox said of the deal struck between the leaders of the world's largest economies, which also trimmed U.S. tariffs on Chinese goods and put China's rare earth export curbs on hold.
If the levies had not been put on hold, Matson could have paid $80 million annually in port fees in both 2026 and 2027, Cox said.
China's state-owned COSCO600428.SS container shipping line was most exposed to U.S. port fees, which analysts said could cost the firm $1.5 billion annually.
Matson reported tjat its consolidated revenue for the third quarter 2025 was $880.1 million compared with $962.0 million for the third quarter 2024.
Cox commented, "Matson's Ocean Transportation and Logistics business segments performed well in a difficult environment marked by continued uncertainty and volatility arising from tariffs and global trade. In Ocean Transportation, our operating income was lower year-over-year primarily due to lower year-over-year freight rates and container volume in our China service. The Transpacific trade lane experienced a muted peak season compared to the elevated demand levels last year due to businesses advancing cargo in the late second quarter and early third quarter ahead of U.S. tariff deadlines, which led to lower third quarter demand for our expedited services."
He added, "We expect Ocean Transportation operating income in the fourth quarter 2025 to be lower than the level achieved in the prior year due to lower year-over-year freight rates and volume in our China service. In the fourth quarter 2025, we expect many of our China service customers to be cautious on inventory levels and work through previously purchased inventory; however, we expect a more stable trading environment for our customers in the fourth quarter as a result of a reduction in uncertainty regarding tariffs, port entry fees, global trade, and other geopolitical factors due to the trade and economic deal between the U.S. and China announced on October 30."
(Reuters and staff)