The U.S. auto industry has had a year unlike any other in recent history.
On the one hand, 25% auto tariffs, which have since been renegotiated to a lower rate, have placed a burden worth billions of dollars on domestic and foreign car brands alike.
While domestic brand Ford says it will lose about $1 billion on tariffs this year (a figure it has downwardly revised multiple times), German brand Volkswagen Group lost $1.3 billion on tariffs in the third quarter alone.
But on the other hand, more lax emissions standards and the end of the regulatory credits market have decreased the cost of building a vehicle by 3% to 5%, according to Wedbush analyst Dan Ives.
Additionally, consumers have been motivated to buy up inventory before the cost of the tariffs is inevitably passed on to them, resulting in a record-setting year for companies like Ford.
However, a pricing decision from a shipping company in Europe could significantly increase costs, placing added pressure on car companies to pass those costs along to consumers.
Car shipper Wallenius Wilhelmsen to pass on new U.S. port fees to customers
Shipping internationally has become a nightmare for many carmakers in 2025, thanks to the tariffs on automotives and automotive parts that U.S. President Donald Trump implemented earlier this year.
Many foreign brands have decided to ship fewer cars to the States due to the added costs. However, thanks to threats from the White House, most have not raised prices in response to the added costs.
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Now, a new hidden cost could emerge as car carrier Wallenius Wilhelmsen indicates it is considering passing on higher port costs to its automaker customers.
Wallenius Wilhelmsen told Reuters on Nov. 5 that the higher-than-expected U.S. port fees on foreign-built ships that took effect in mid-October as part of a trade dispute between China and the U.S. forced the company to withdraw its financial outlook.
“We’re clear that this bill is an additional cost we’ve been given and that we need to pass on to our customers,” Chief Executive Lasse Kristoffersen said.
It means automakers using the service could face up to $300 in additional costs per vehicle.
Auto brands that use Wallenius Wilhelmsen
- Hyundai and Kia
- Volvo
- Volkswagen
- BMW
- Mercedez Benz
- Toyota
“Underlying demand for our services is expected to continue to be strong into the fourth quarter, but we expect our financial performance to be softer than in the third quarter due to the U.S. port fee issue,” said Kristoffersen.
What does Wallenius Wilhelmsen do?
Wallenius Wilhelmsen operates a network of 128 shipping vessels that service 15 trade routes to six continents. The Norway-based company has 9,500 employees in 28 countries.
Its RoRo vessles (roll-on/roll-off) are about 200 meters long, and its upcoming Shaper Class vessels will have a capacity between 9,300 car equivalent units and 11,700 CEU.
The shipping company’s current largest vessel has a carrying capacity of about 7,934 CEU.
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Wallenius Wilhelmsen reported third-quarter revenue of $1.3 billion and a net profit of $280 million.
However, the company states that port fees more than tripled in the third quarter, from $14 per net ton to $46 per net ton, due to the U.S. dispute with China.
The company is passing along that cost, but says it is unclear whether the 12-month reprieve the two countries came to in late October covers port fees.
If it does not, Wallenius Wilhelmsen could see fourth-quarter cost exposure reach $100 million, unless it passes the cost along to automakers.
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