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BIMCO: Shipping is increasingly caught in the crosshairs of a trade war

Dry bulk, container and tramp segments most affected.

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The already long list of tariffed goods is expected to grow even longer if the US and China implement tariffs on a further USD 200 and USD 60 billion worth of goods respectively.  And the casualties in this trade war are the dry bulk, container and tramp segments.

BIMCO’s chief shipping analyst Peter Sand in a report Wednesday said the dry bulk shipping industry would be most affected in terms of volumes and that 2,002 Handymax loads are now affected.  This is equal to the impact on the container shipping industry which also sees 1.9% of total containerized seaborne trade affected.

With the trade war constantly developing andan end not in sight, the shipping industry is trapped between a rock and a hard place in an already troubled market place, Sand said.

Here is his analysis:

The US: Container shipping will be seriously hit by the next crossfire

From 23 August 2018, the second part of the USD 50 billion list, worth USD 16 billion, originally announced in late May, has been tariffed with commodities such as plastics and oil products targeted. The first list, worth USD 34 billion came into force on 6 July 2018 and targeted mainly machinery and electronic goods.

The US also published a list of goods worth USD 200 billion which it planned to add 10% tariffs to. They have later raised the proposed tariff levels to 25%. This list covers more consumer goods than previously seen varying from bicycles to fish and Christmas lights, and will undergo further review before a decision is made about possible implementation.

Of the goods which already face tariffs, namely the targeted steel and aluminium commodities and the USD 34 billion worth of goods, most are dry bulk and container goods. 23.3 million tonnes of the affected steel and aluminium commodities were imported by the US via the sea in 2018.

Dry bulk commodities will also be affected if the USD 200 billion list is implemented, with 4.1 million tonnes of the targeted commodities imported to the US from China in 2017, these goods include wood commodities and cements. In total the dry bulk goods affected by US tariffs are equivalent to 548 Handymax loads (50,000 DWT).

While containerized goods have already been targeted, by the USD 50 billion round, the biggest impact on these will come if the proposed USD 200 billion are implemented. So far, the tariffed goods total to 6.6 million tonnes of seaborne trade from China to the US in 2017.This is equivalent to 660,000 TEU (10 tonnes per TEU/global average), which amounts to 5.9% of US West Coast container imports in 2017.  If you assume a lighter/heavier cargo per transported TEU or FEU, naturally the number of containers change accordingly.

A further 22.4 million tonnes of seaborne containerized goods would be impacted by the US 200 billion list, which amounts to a further 20.1% of USWC imports in 2017, or 2.24 million TEU. In total, if this latest round of tariffs were also to be implemented, 1.5% of the global seaborne container trade would be affected.

China: Running out of Ammunition

The Chinese USD 16 billion list also came into force on 23 August 2018, a modified list compared to the original publication, with the removal of crude oil an important development. This revised list contains wood commodities as well as some coals and metals.

Following the publishing of the USD 200 billion list by the US, China responded by releasing four lists worth in total USD 60 billion, to be tariffed between 5% and 25%.

However, the trade war has now reached a stage where China is unable to respond equally as it imports much less from the US than it exports.

The dry bulk shipping industry remains by far the most affected by Chinese tariffs in terms of volumes. The largest ‘one commodity’ targeted by the trade war are US soybeans which as of 6 July 2018 face 25% tariffs when imported into China, but the impact of these on Chinese buyers may be limited.

A fall in the price of US soybeans since the tariff’s implementation, has resulted in US soybeans being 21% cheaper than Brazilian soybeans (Source: Bull Positions), the second largest exporter of soybeans to China, thus eroding much of the added costs brought about by the tariffs.

The proposed USD 60 billion would also affect the dry bulk industry the most, with 10.5 million tonnes of listed dry bulk commodities shipped from the US to China. In 2017, 72.2 million tonnes of the involved commodities (both with tariffs implemented and proposed) were imported via the sea by China from the US. This represented 1.4% of total seaborne dry bulk trade in 2017 and is equivalent to 1,454 Handymax loads (50,000 DWT).

In the tramp shipping market, uncertainty about where the next cargo will come from makes it very difficult to reposition your ship after discharge. For the liner shipping market, matching deployed capacity on trade lanes with actual demand becomes even harder.

Photo credit: Pixabay
Published: 13 September, 2018

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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