Tariffs could temporarily curb US bunker demand
US president-elect Donald Trump's proposed 25% tariffs on Mexico and Canada could affect all products coming into the US from these countries, including the significant amount of residual fuel oil from Mexico and Canada that US Gulf and East coast buyers import. This could rise prices of fuel oil sold for bunkering on the two US coasts, prompting some shipowners calling these ports to fuel outside the US, in more price-competitive ports...
On the US West coast, Trump’s plan to increase tariffs on Chinese goods has prompted some shippers to front load container cargo. Potential 2025 tariffs could slow container ship traffic from China to the US’ busiest container ship ports – Los Angeles and Long Beach in California - hindering bunker demand...
The Mexico and Canada tariffs could push US East and Gulf coast importers to purchase more residual fuel oil from other countries like Algeria, Colombia, Iraq, Kuwait, Nigeria, Peru and Saudi Arabia...Chinese tariffs increase could prompt US West coast importers to shift their purchases to other southeast Asian countries such as Vietnam, Indonesia, Malaysia and Thailand...But once the dust settles from the geographical reshuffling, the US bunker market could settle into a new normal...
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