Some China-bound ships carrying crude oil and other commodities to Asia’s top consumer are facing cancellations following Beijing’s retaliatory levies on American vessels, sending ripples through the global logistics sector.
A handful of oil tankers had provisional bookings to deliver cargoes to Chinese ports canceled on Friday, said several officials involved in the market who asked not to be identified discussing private information, after the world’s largest oil importer announced it would place charges on US vessels. Chartering costs for bulk commodity carriers hauling coal and iron ore also climbed after the announcement.
China announced on Friday that it would impose fees on US ships in retaliation for similar measures due to be imposed by the Trump administration next week that are aimed at kick-starting America’s shipbuilding industry. Those levies would begin at 400 yuan ($56) per ton, translating to about $6.2 million in additional fees for a giant supertanker per port visit, according to calculations.
The levies on such vessels, which are capable of hauling two million barrels of crude, are threatening to add a significant cost to a key global oil trade.
“The impact as of now is significant,” Fearnley Securities analysts including Fredrik Dybwad wrote in a note. “As the numbers are significant, this should create inefficiencies and likely lead to higher rates.”
The development added to gains in already-surging freight derivatives contracts, which have rallied almost 25% for Middle East-to-China voyages since Thursday morning, people involved in the market said. Tanker earnings began rallying after the US sanctioned a major Chinese oil terminal a day earlier.
The levies take effect from Oct. 14, mirroring those implemented by Washington on Chinese vessels, and will increase each year, climbing almost threefold by April 2028.
While many of the world’s biggest oil tanker operators are based outside of the US, several have US listings and major US shareholders.
If American entities directly or indirectly hold 25% or more of the equity in terms of voting rights or board seats of the companies operating vessels, they will be considered American. Ships are also considered as such if they fly the US flag or are built in America.
“This new China fee framework is meaningfully impactful as it would affect publicly-listed companies, especially those in the US markets with 25% or more holdings from US-domiciled investment funds,” Jefferies analysts including Omar Nokta wrote in a note.
