Simple Insights • November 2026
Two Deadlines That Could Shake Your November Freight Budget
Section 301 exclusions and China vessel fees both expire November 9. Here's what that means for your shipping costs — and what to do before the window closes.
Mark November 9 on your calendar. Two separate trade policies — both ticking down to the same expiration date — could add measurable costs to ocean freight and imported goods in the final stretch of 2026. Neither has made front-page news. But for shippers moving product from Asia, both deserve your attention this week.
Deadline #1: Section 301 Product Exclusions
Since 2018, Section 301 tariffs have applied additional duties to a wide range of Chinese-origin goods. Over the years, the U.S. Trade Representative has periodically issued exclusions — temporary carve-outs that let specific products enter without those extra charges. A significant batch of those exclusions, covering 178 product classifications, expires on November 9.
Products entered for consumption before midnight on November 9 can still use the exclusion. Anything that enters on November 10 or later — without a new extension or reinstatement — may again face the additional Section 301 duty on top of standard tariffs.
Not every product that falls under a listed HTS code automatically qualifies for an exclusion. The original exclusion language controls, and some categories are narrowly defined. If you rely on a current exclusion, pull the exact language from your broker before November 9 — and ask whether a renewal petition is pending.
Most Likely to Be Affected
- Industrial components and machinery parts
- Electronics subassemblies
- Certain consumer goods with no domestic alternative
- Chemical inputs and specialty materials
What Shippers Should Do Now
- Pull your top 10 HTS codes from your customs broker
- Identify which, if any, are under an active exclusion
- Accelerate entries if product is already in transit
- Budget for the additional duty rate beginning November 10
Deadline #2: China Vessel Fee Suspension
This one is newer and less understood. In late 2025, the USTR announced fees targeting Chinese-owned, Chinese-operated, and Chinese-built vessels calling at U.S. ports — part of a broader Section 301 investigation into China's maritime and shipbuilding dominance. The fees were paused from November 10, 2025 through November 9, 2026, to allow trade negotiations to continue. That suspension expires at midnight.
The USTR proposed a two-month extension through January 9, 2027, and the public comment period closed on October 30. As of publication, the extension has not been formally finalized. That means the suspension could lapse on schedule — or it could be extended at the last minute.
| Vessel Type | Fee Structure (If Resumed) | Current Status |
|---|---|---|
| Annex I Chinese-operated vessels |
$80/net ton (April 2026 tier) Escalates to $110 (Apr 2027), $140 (Apr 2028) |
$0 — suspended |
| Annex II Chinese-built, non-Chinese operated |
$18–$33/net ton OR $120–$250/container depending on order year |
$0 — suspended |
| Annual cap | 5 charges per vessel per year | Not applicable during suspension |
| Ship-to-shore cranes & chassis | 100% duty on imports | Also suspended |
Important nuance: The fee is owed by the vessel operator, not the cargo owner. But costs pass through. Carriers with large Chinese-built fleets will absorb higher port costs — and historically, those costs find their way into base rates, surcharges, or both. The exposure is real even if it arrives indirectly.
"The vessel operator owes the fee — but the cargo owner pays eventually."
— Supply Chain Dive, October 2026If the Extension Is Confirmed
- Suspension runs through January 9, 2027
- No immediate fee impact on vessel calls
- Watch for a Federal Register notice
- Use the extra 60 days to review carrier contracts
If the Suspension Lapses
- April 2026 tier rates likely resume on November 10
- Carriers may issue surcharge notices with little warning
- Spot rates could spike on affected trade lanes
- Contract language becomes critical immediately
Review your ocean carrier agreements for change-in-law clauses, surcharge definitions, notice period requirements, and vessel substitution terms. If a carrier swaps to a Chinese-built vessel on your lane and fees resume, your contract language determines who absorbs the cost — and how quickly you get notice.
The Broader Picture: A Market Already Under Pressure
These deadlines don't land in a vacuum. The freight market heading into Q4 is running hotter than most shippers budgeted for, and any new cost trigger has less cushion to absorb than a year ago.
Shipper Costs
U.S. Bank Freight Payment Index shows costs surging while shipment volumes are up just 0.5%. Shippers are paying dramatically more to move the same freight.
Diesel Costs
Elevated diesel adds roughly $0.92 per mile on spot van moves. Carriers are passing fuel costs through aggressively via FSCs tied to current EIA benchmarks.
Rejection Rates
When carriers reject nearly 1 in 7 tendered loads, the spot market absorbs the overflow at higher cost. Rejection rates above 10% signal a tightening capacity environment.
Spot Rates
Spot van is up significantly year-over-year. Reefer is running $2.73/mile. Adding a new import duty or vessel surcharge on top pushes landed costs higher still.
An additional complication: as of November 1, a threatened strike by ILWU Local 26 watchmen at the Port of Long Beach — covering roughly 85% of cargo at 8 terminals — remains unresolved. Even a short work stoppage could ripple into vessel diversions, and any rerouting to avoid Long Beach would affect which ships handle your freight and whether those vessels fall under the China vessel fee categories.
5 Things to Do Before November 9
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1Audit your HTS codes. Pull your top import classifications and cross-reference them against the list of expiring Section 301 exclusions. Your customs broker can run this in hours. If any of your codes are covered, get entries in before November 9 or plan for the additional duty on November 10 shipments.
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2Check your ocean carrier's fleet composition. Ask your freight forwarder or carrier rep which vessels serve your lanes — and whether they're Chinese-built or Chinese-operated. This determines whether your shipments would be subject to the Annex I or Annex II fee structure if the suspension lapses.
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3Review contract surcharge language. Look for change-in-law provisions, port fee pass-through clauses, and required notice periods. If a new surcharge is announced with 48-hour notice and your contract requires 30 days, you have leverage — but only if you know the clause is there.
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4Monitor Federal Register docket USTR-2026-0694. This is where the formal extension notice — if confirmed — would be published. Set an alert or have your broker track it daily through November 9. A last-minute filing is entirely possible given the October 30 comment deadline.
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5Build a two-scenario freight budget for Q4. Model your landed costs under both a confirmed extension (status quo through January) and a lapsed suspension (fees resume November 10 at the April 2026 tier). The spread between those two scenarios is your financial exposure — and knowing it now puts you in a better position than finding out on a carrier invoice in December.