MID-SHIP Petcoke Report – April 22, 2025

April 22, 2025

Market overview:  

Uncertainty around U.S. trade policy and its impact on the global economy has stunted activity.

On April 17, 2025, the U.S.T.R. Section 301 Maritime Action against Chinese dominance in the maritime sector announced the implementation of fees on Chinese-owned/operated vessels and Chinese-built ships starting in October 2025. The U.S.T.R.’s determination consists of four immediately implemented actions (Annexes I-IV) and one proposed action subject to public comment (Annex V). These actions include fees on Chinese vessel operators and owners, fees on Chinese-built vessels, fees on foreign-built vehicle carriers, restrictions on LNG transport, and proposed tariffs on port equipment. Please see our special bulletin for more information and details. Important takeaways are that ships smaller than 4,000 TEU and 55,000 DWT in capacity are exempt from the port fees for Chinese-built vessels, which provides relief for the container ship trade between Miami and the Caribbean and others that rely on smaller tonnage. Additionally, bulk ships with a capacity of up to 80,000 DWT are spared. That should free bulkers and tankers of up to Panamax in size.

There are exceptions for Chinese-built ships on routes of less than 2,000 nautical miles. In addition to providing relief for the Caribbean market, the exemption responds to the concerns of Canadian vessel operators, those trading in the Great Lakes-Saint Lawrence Seaway shipping corridor. Vessels identified as lakers and vessels arriving in Ballast (empty) are exempted.

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