Oil traders increasingly avoid Chinese-built tankers for shipments to or from U.S. ports amid concerns over President Donald Trump’s proposed fees of at least $1 million per port call on such vessels. Charterers favour alternatives like South Korean-built ships, with some Chinese-built vessels already being fixed at lower rates. For example, the Chinese-built Olympic Sky was recently chartered at a 10% discount compared to a Korean-built counterpart for the same U.S.-UK route. While Trump’s plan is not yet finalized, market distortions are emerging, with some shipowners adjusting lease contracts to shift potential levies to charterers. The uncertainty has also stalled second-hand sales and new orders of Chinese ships, even as China leads global tanker construction, with over 70% of the tanker order book.
