As the USA and the world digests the news of the US tariffs and reciprocal process, one slowly picks at the news bits. Our friends at UK shipping broker Gibson provide their weekly report, and title it Liberation Day.
Among the points- Crucially, the White House clarified that crude oil and refined products will not be subject to the additional 10% tariffs. Notable for tanker markets is also that tariffs on Canada and Mexico will continue as they are, with both Canadian and Mexican oil and products trading into the US tariff free, so little rerouting is expected to occur here yet. As with all announced tariffs, this may be subject to change.
There’s another comment on OPEC+ planning on bumping up production. On a separate note, I do know some US producers have been slightly skeptical about “Drill baby drill!” so we will have to see how the oil markets actually negotiate their way thru these times.
As some of you know, I like Gibson’s report as it provides data on various routes. All routes doing well this week
Separate item: Refined oil and crude escape tariffs. What about other energy related products - LPG, Butane, LNG, etc? US is not a major importer on these fuels.
Here’s an update on the other fuels. Supposedly, the “where built” issue is still on the table.
The link provides some data for LPG. In 2024, Chinese firms and/or Chinese-built vessels loaded 55 of 293 VLGCs from US ports. Given comments from BW LPG mgmt, China does not actually import a lot of LPG from US. So likely, it is Chinese-built VLGCs loading at US ports. As also pointed out by BW LPG mgmt, one way around the issue is for the VLGC owner to NOT send Chinese-built vessels to US ports. With VLGCs that’s probably doable at this time (most VLGCs are South Korean built)
The impact on the smaller LPG vessel sizes is probably an even greater hit on margins to owners/charterers. Will be interesting to see how this plays out if it goes into effect. Will be interesting to see how the LNG bunkering market views this development
Went and peeked at BWLP’s fleet again. BWLP had less of a problem prior to the acquisition of the Avance Gas VLGC fleet. With that deal, BWLP acquired 8 Chinese-built VLGCs. That means 8 of 31 owned vessels is from a Chinese shipyard. But how will US count a company’s fleet? Are the charter-in vessels included in the BWLP fleet? What about the vessels used for trading (Product services)? There’s three out of nine vessels that are Chinese-built in that group