Suezmaxes the winners from Chinese oil tariffs

Last month’s decision by Beijing to slap a retaliatory 5% tariff on imports of US crude oil will hurt VLCC earnings, but could be good news for suezmaxes, posits Alphatanker in its latest weekly report.

While much replacement crude will head from West Africa to China on VLCCs, this voyage is 18 days shorter than cargoes heading from the US Gulf, the AXS Marine subsidiary pointed out, leading to a predicted lower ton mile demand for VLCC voyages into China over the next few months.

For suezmaxes however, liftings out of Libya and the Black Sea are anticipated to grow, Alphatanker predicted with the rates delta with VLCCs anticipated to be slim.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button