Wallenius Wilhelmsen expects USTR fees to remain despite suspension announcement
- Uncertainty remains over USTR port fee suspension for vehicle carriers
- Wallenius Wilhelmsen faces up to $400m cost exposure if fees persist
- World’s largest operator of pure car and truck carriers is seeking to recover costs from clients and fleet optimisation
Growing trade imbalances, US import tariffs and USTR port fees expected to weigh on future vehicle carrier operator revenues
WALLENIUS Wilhelmsen chief executive Lasse Kristoffersen says the company continues to assume that USTR port fees for vehicle carriers remain in force, despite recent announcements from Washington suggesting a suspension.
From October 14, a port fee of $46 per net tonne was applied to all foreign-built ro-ro cargo-type vessels calling at US ports. But on November 1, the White House announced a one-year suspension of Section 301 with effect from November 10.
According to Kristoffersen, however, Wallenius Wilhelmsen has yet to receive official confirmation that the USTR fees on vehicle carriers are affected by this decision.
“We have not seen anything to confirm USTR fees for vehicle carriers have been suspended. We have made quite a few calls to try to find out, but for now we assume the port fees are here to stay,” Kristoffersen said following the release of the company’s third-quarter results.
The Oslo-listed vehicle carrier operator expects a USTR cost exposure of around $100m in the fourth quarter, and between $300m-$400m for the whole of 2026 if the fees remain in place.
Kristoffersen added that the company was working with customers to recover part of the additional cost, noting “strong understanding” among clients that such fees cannot be absorbed solely by the carrier.
To mitigate the financial impact, Wallenius Wilhelmsen plans to optimise fleet deployment. Since the USTR port fee applies to a maximum of five times per vessel per calendar year, the company will assign certain ships exclusively to US trades to maximise port calls while reducing the number of vessels entering US ports.
“Whether a ship arrives empty or full it doesn’t matter, as the fee is based on vessel net tonnage,” Kristoffersen explained, adding that the company will ensure vessels arrive fully laden to offset costs.
The world’s largest operator of pure car and truck carriers reported total revenue of $1.33bn for the third quarter of 2025, down 1.6% year-on-year and slightly below the $1.35bn reported in Q2.
Earnings before interest, taxes, depreciation and amortisation for the third quarter was $471m, in line with last year’s third quarter but marginally lower than Q2.
The company cited shifting trade patterns and geopolitical tensions, including US tariffs on vehicles and port fees, as continuing to impact the global car carrier and deep sea ro-ro markets.
Kristoffersen noted that US tariffs on imported vehicles were estimated to have added $4,000-$6,000 to the price of imported cars, while USTR port fees were expected to increase costs by up to $300 per car. Several global automakers have already warned of significant profit hits due to the fees.
Meanwhile, ongoing trade imbalances between Asia and Europe, and Asia and North America, are affecting fleet efficiency, as more vessels ballast back to Asia.
A slight decline in cargo volumes quarter-on-quarter was offset by higher freight rates, with Wallenius Wilhelmsen’s average freight rates increasing by 1% to $65.4 per cu m.
Wallenius Wilhelmsen controls a fleet of 128 pure car and truck carriers, including 81 owned vessels. During the third quarter, it agreed to sell the 1995-built, 5,800 ceu Turandot (IMO: 9070450) for further trading, with delivery scheduled to the buyer in the fourth quarter.
Kristoffersen said the company had 14 new 9,300 ceu vessels under construction in China, but no immediate plans for additional newbuilding orders.
