Due to the escalating trade war between the U.S. and China, several U.S. petroleum gas shipments have been redirected to other countries. In the past week, four propane cargoes were rerouted to Japan and South Korea, and at least one ethane cargo was canceled.
The disruptions highlight the impact of tariffs, with China, traditionally a major buyer of U.S. ethane and petroleum gases, facing trade barriers such as a 145% tariff on U.S. imports and high fees for Chinese-linked vessels accessing U.S. ports.
As of this week, eight Very Large Gas Carriers (VLGCs) are still en route to China, but four U.S. LPG shipments have diverted to other countries since April 17 due to the ongoing trade war. Diverted vessels, including Zakher, Maple Gas, and BW Gemini, are now heading to South Korea. In 2024, the U.S. exported about 310,000 barrels of propane per day to China.
The trade conflict may continue to affect spot ethane shipments, while committed cargoes remain difficult to cancel. Tariffs are also slowing Asia-bound ethylene flows, used in plastics and industrial solvents.
