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Business Times
7 days ago
- Business
- Business Times
Chinese shipyards' market share falls to 52% amid US port fees concerns, says Bimco
[SINGAPORE] The market share of Chinese shipyards dropped by almost a third from January to June this year amid concerns about upcoming fees on Chinese ships entering US ports, shipping trade body Bimco said. However, China is unlikely to be unseated from its leading position in the near future because of capacity constraint elsewhere as well as the small share of Chinese ships visiting the US, analysts said. Bimco data published on Wednesday (Jul 16) showed that Chinese shipyards bagged 52 per cent of orders placed in the six months, lower than the 72 per cent market share they had enjoyed in July to December 2024. China holds a leading position in the global shipbuilding industry – except in the cruise vessel sector – while South Korea and Japan are the second and third-largest shipbuilding nations respectively, said Bimco. Filipe Gouveia, shipping analysis manager at Bimco, attributed the dip in China's market share to concerns over the impending port fees on Chinese ships in US ports. Port fees, which will be effective from October 2025, will impact both Chinese owners and operators, as well as ships built in China. But smaller Chinese-built ships and those that make short-haul voyages will be exempted from fees. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Even if shipowners try to avoid ordering ships in China due to United States Trade Representative (USTR) fees, there is a limit to the capacity available outside the North Asian country, Gouveia said. The shipbuilding capacity constraint has already led to a large order book with long lead times, especially for larger ships, container ships, gas carriers and cruise ships. Out of this year's orders, 31 per cent are expected to be delivered in 2027, 38 per cent in 2028 and 23 per cent thereafter. Said Gouveia: 'China's dominant position in shipbuilding is unlikely to significantly change soon, but the country could face increasing competition in the medium term. 'Meanwhile, although the US and India currently have limited shipbuilding capacity, both governments are actively working to strengthen their domestic industries. However, even if they succeed, it will take time for them to scale up production.' Tan Hua Joo, container industry analyst at data provider Linerlytica, expects China to retain its global dominance in boxships despite the USTR actions. This is because less than 25 per cent of the global containership fleet call at US ports currently. Although the Chinese market share is slightly down from last year, China's shipyards continue to dominate new containership orders in 2025. Tan cited Linerlytica data which indicated that Chinese yards bagged more than 60 per cent of new orders in 2025. More than 75 per cent of the global fleet will not be affected by the US port fees, and will therefore shipowners will not be deterred from proceeding with newbuilding plans in China, he added. Also, total containerships calling at US ports will shrink further if the USTR proceeds with the planned fees, believes Tan, as operators will switch to increased transhipments and shorten their routes in order to reduce the impact from those fees. A drop in global ship contracting and a shift in the types of ships being ordered have also contributed to the lower market share for China, Bimco said. If global ship contracting had not significantly dropped during the start of the year, China's market share of new orders would have likely been larger. Orders slowed significantly for tankers, gas carriers and bulkers amid weaker freight rates. Containerships and cruise ships were the only large sectors where building increased. South Korea has notably overtaken China in crude tanker shipbuilding so far this year, after pipping the North Asian rival in gas carriers in 2024. Earlier in May, Yangzijiang Shipbuilding posted a drastic cut in its order wins for the first quarter of 2025 – with only six vessels worth US$300 million, compared with 38 vessels for US$3.3 billion for the year-ago period. The Chinese company commented then that US policies and global tariff actions prompted customers to adopt a wait-and-see approach, pushing back their decisions to order ships. Mitsui OSK Lines, owner of the world's largest fleet of liquefied natural gas carriers, earlier said it is hard to buy Chinese vessels for the time being as the US ramps up scrutiny of China's shipbuilding industry.
Sky News AU
23-06-2025
- Business
- Sky News AU
US-Iran tensions slow tanker traffic through Strait of Hormuz, trade group says
A growing number of cargo ships are said to be steering clear of the Strait of Hormuz, the vital artery for global oil and gas shipments, as tensions spike in the Middle East following US airstrikes on Iranian nuclear sites. The world's largest shipping trade group, Bimco, says several operators have begun halting transits through one of the world's most critical chokepoints, which links the Persian Gulf with the Gulf of Oman. While ship traffic had remained relatively stable in recent weeks, the mood shifted rapidly after Saturday's US strikes on key Iranian enrichment facilities. 'Before the US attack, the impact on shipping patterns was limited,' Jakob Larsen, Bimco's head of maritime security, told CNBC. 'Now, after the US attack, we have indications that the number of ships passing is reducing.' Larsen warned that if Iran begins retaliating by targeting vessels, 'it will most likely further reduce the number of ships transiting through the [Strait of Hormuz].' About 20% of worldwide oil and petroleum product consumption through 2024 and early 2025 was shipped through the strait, according to the US Energy Information Administration. It's also the primary export route for Qatari liquified natural gas, with around a fifth of all global LNG supply passing through last year, the agency said. Oil futures slid on Monday as traders appeared to downplay the risk of a major disruption to Middle East crude supplies, despite the US launching direct strikes on Iran's nuclear facilities over the weekend. West Texas Intermediate (WTI) crude dropped 84 cents, or 1.14%, to $73 per barrel by 10:30 a.m. ET. Brent crude, the global benchmark, slipped 81 cents, or 1.05%, to $76.20. Prices initially surged overnight, with Brent topping $81 for the first time in weeks and WTI reaching its highest level since January. But momentum reversed after President Trump posted a message demanding that 'everyone' keep oil prices lower. It was unclear who he was targeting, though the remark was widely interpreted as a nudge to US producers to ramp up output. Meanwhile, Goldman Sachs has warned that oil prices could surge to $110 per barrel if traffic through the Strait of Hormuz is severely disrupted — such as a 50% cut for one month followed by a sustained 10% reduction. The Wall Street giant forecasts Brent crude to average $95 in Q4 2025 under this scenario and cites a 52% probability that Iran will close the strait this year, based on Polymarket data. Given that the Strait of Hormuz handles about 20 million barrels daily, any prolonged disruption would pose serious risks to global energy markets. The US strikes targeting Fordo, Natanz and Isfahan marked a sharp escalation in Washington's backing of Israel's push to cripple Iran's nuclear ambitions. Tehran swiftly condemned the attacks and vowed to protect its sovereignty. In response, Iran's parliament reportedly approved a resolution to close the strait, though any final decision rests with the country's Supreme National Security Council. Some tankers have been instructed to hold off entering the strait until tensions ease, according to Andy Critchlow of S&P Global Commodity Insights. 'We have indications from shippers that they are putting tankers and vessels on standby,' Critchlow said Monday, adding that LNG suppliers in the region have asked buyers to delay movements to avoid having ships linger in the Gulf. Japanese shipping giant Nippon Yusen introduced a temporary standby policy for vessels heading toward the strait, limiting their time in the Gulf when schedules allow, S&P Global Commodity Insights reported. Although the company hasn't stopped navigation through the region, it's clearly proceeding with caution. Another major Japanese operator, Mitsui OSK Lines, has similarly asked its fleet to minimize time spent in the Gulf following the US airstrikes, according to Reuters. German container shipper Hapag-Lloyd said its vessels continue to transit the strait but warned the situation remains 'unpredictable' and could shift rapidly. A company spokesperson told CNBC that emergency protocols are in place if the conflict worsens. Shipping analysts said that container operations in the Persian Gulf and upper Indian Ocean have not been significantly affected as of Monday morning. But risk assessments are now being conducted continuously. 'All companies access the risk individually — but the current situation requires them all to do so several times a day,' Peter Sand, chief analyst at freight platform Xeneta, told CNBC. 'Staying in close dialogue with national intelligence agencies and their own captains onboard the ships.' Sand added that insurance premiums for ships in the region have 'probably' been raised again in light of Iran's threats. US officials have called on China — Tehran's biggest oil customer — to use its influence to dissuade Iran from blocking the strait. The potential closure would have far-reaching consequences for the global economy, pushing up energy prices, delaying shipments and straining diplomatic ties across the region. Originally published as US-Iran tensions slow tanker traffic through Strait of Hormuz, trade group says
New York Post
23-06-2025
- Business
- New York Post
US-Iran tensions slow tanker traffic through Strait of Hormuz, trade group says
A growing number of cargo ships are said to be steering clear of the Strait of Hormuz, the vital artery for global oil and gas shipments, as tensions spike in the Middle East following US airstrikes on Iranian nuclear sites. The world's largest shipping trade group, Bimco, says several operators have begun halting transits through one of the world's most critical chokepoints, which links the Persian Gulf with the Gulf of Oman. While ship traffic had remained relatively stable in recent weeks, the mood shifted rapidly after Saturday's US strikes on key Iranian enrichment facilities. 5 Basij paramilitary force speed boats are sailing along the Persian Gulf in this 2024 file photo. NurPhoto via Getty Images 'Before the US attack, the impact on shipping patterns was limited,' Jakob Larsen, Bimco's head of maritime security, told CNBC. 'Now, after the US attack, we have indications that the number of ships passing is reducing.' Larsen warned that if Iran begins retaliating by targeting vessels, 'it will most likely further reduce the number of ships transiting through the [Strait of Hormuz].' About 20% of worldwide oil and petroleum product consumption through 2024 and early 2025 was shipped through the strait, according to the US Energy Information Administration. It's also the primary export route for Qatari liquified natural gas, with around a fifth of all global LNG supply passing through last year, the agency said. Oil futures slid on Monday as traders appeared to downplay the risk of a major disruption to Middle East crude supplies, despite the US launching direct strikes on Iran's nuclear facilities over the weekend. 5 The world's largest shipping trade group, Bimco, says several operators have begun halting transits through the narrow waterway that links the Persian Gulf with the Arabian Sea. Gallo Images via Getty Images West Texas Intermediate (WTI) crude dropped 84 cents, or 1.14%, to $73 per barrel by 10:30 a.m. ET. Brent crude, the global benchmark, slipped 81 cents, or 1.05%, to $76.20. Prices initially surged overnight, with Brent topping $81 for the first time in weeks and WTI reaching its highest level since January. But momentum reversed after President Trump posted a message demanding that 'everyone' keep oil prices lower. It was unclear who he was targeting, though the remark was widely interpreted as a nudge to US producers to ramp up output. Meanwhile, Goldman Sachs has warned that oil prices could surge to $110 per barrel if traffic through the Strait of Hormuz is severely disrupted — such as a 50% cut for one month followed by a sustained 10% reduction. The Wall Street giant forecasts Brent crude to average $95 in Q4 2025 under this scenario and cites a 52% probability that Iran will close the strait this year, based on Polymarket data. 5 The Strait of Hormuz is a critical waterway through which millions of barrels of oil are transported daily. Given that the Strait of Hormuz handles about 20 million barrels daily, any prolonged disruption would pose serious risks to global energy markets. The US strikes targeting Fordo, Natanz and Isfahan marked a sharp escalation in Washington's backing of Israel's push to cripple Iran's nuclear ambitions. Tehran swiftly condemned the attacks and vowed to protect its sovereignty. In response, Iran's parliament reportedly approved a resolution to close the strait, though any final decision rests with the country's Supreme National Security Council. 5 The Post covered the US strike on Iran over the weekend. Some tankers have been instructed to hold off entering the strait until tensions ease, according to Andy Critchlow of S&P Global Commodity Insights. 'We have indications from shippers that they are putting tankers and vessels on standby,' Critchlow said Monday, adding that LNG suppliers in the region have asked buyers to delay movements to avoid having ships linger in the Gulf. Japanese shipping giant Nippon Yusen introduced a temporary standby policy for vessels heading toward the strait, limiting their time in the Gulf when schedules allow, S&P Global Commodity Insights reported. Keep up with today's most important news Stay up on the very latest with Evening Update. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Although the company hasn't stopped navigation through the region, it's clearly proceeding with caution. Another major Japanese operator, Mitsui OSK Lines, has similarly asked its fleet to minimize time spent in the Gulf following the US airstrikes, according to Reuters. German container shipper Hapag-Lloyd said its vessels continue to transit the strait but warned the situation remains 'unpredictable' and could shift rapidly. A company spokesperson told CNBC that emergency protocols are in place if the conflict worsens. 5 The image above shows the Fordo nuclear facility in Iran after it was targeted by US airstrikes over the weekend. MAXAR Technologies Shipping analysts said that container operations in the Persian Gulf and upper Indian Ocean have not been significantly affected as of Monday morning. But risk assessments are now being conducted continuously. 'All companies access the risk individually — but the current situation requires them all to do so several times a day,' Peter Sand, chief analyst at freight platform Xeneta, told CNBC. 'Staying in close dialogue with national intelligence agencies and their own captains onboard the ships.' Sand added that insurance premiums for ships in the region have 'probably' been raised again in light of Iran's threats. US officials have called on China — Tehran's biggest oil customer — to use its influence to dissuade Iran from blocking the strait. The potential closure would have far-reaching consequences for the global economy, pushing up energy prices, delaying shipments and straining diplomatic ties across the region.
Ya Libnan
23-06-2025
- Business
- Ya Libnan
Shipowners avoid the Strait of Hormuz to reduce exposure after U.S. strikes on Iran
An Islamic Revolutionary Guard Corps speed boat sailing along the Arabian Gulf during the IRGC marine parade to commemorateArabian Gulf National Day, near the Bushehr nuclear power plant in the seaport city of Bushehr, in the south of Iran, on April 29, 2024. HIGHLIGHTS The number of vessels navigating the critically important Strait of Hormuz appears to be declining, according to the world's largest shipping association, amid deepening fears of a widening conflict in the Middle East. Jakob Larsen, head of security at Bimco, which represents global shipowners, said all shipowners were closely monitoring developments in the region and some have already paused transits in the Strait of Hormuz due to the deterioration of the security situation. His comments come shortly after the U.S. on Saturday attacked three major Iranian nuclear enrichment facilities, a massive escalation in its involvement with Israel's effort to cripple Tehran's nuclear program. Iran has condemned the attack, saying it reserves all options to defend its sovereignty and people. 'Before the US attack, the impact on shipping patterns was limited,' Bimco's Larsen said. 'Now, after the US attack, we have indications that the number of ships passing is reducing. If we begin to see Iranian attacks on shipping, it will most likely further reduce the number of ships transiting through the [Strait of Hormuz],' he added. The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world's most important oil chokepoints . In 2024 and the first quarter of 2025, for instance, flows through the narrow waterway made up roughly 20% of global oil and petroleum product consumption, according to the U.S. Energy Information Administration . Around 20% of global liquified natural gas (LNG) also transited through the Strait of Hormuz last year, primarily from Qatar. The inability of oil to traverse through the waterway, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays. Yet, in the aftermath of the U.S. attacks on key nuclear sites, Iran's parliament reportedly approved the closure of the waterway, risking alienating its neighbors and trade partners. Standby mode Andy Critchlow, EMEA head of news at S&P Global Commodity Insights, said some anecdotal evidence suggested a slowdown in shipping navigation through the Strait of Hormuz following the U.S. strikes on Fordo, Natanz and Isfahan. 'The pace at which tankers are entering the Strait of Hormuz has definitely slowed. We have indications from shippers that they are putting tankers and vessels on standby, so they are waiting for an opportune moment to enter the Strait,' Critchlow told CNBC's ' Europe Early Edition ' on Monday. 'At the same time, there have been reports that suppliers of LNG, for example, in the Gulf have told lifters of LNG to wait before entering, so [as] not to loiter in the Gulf, keep vessels out of that region,' he added. Japan's Nippon Yusen , one of the world's largest ship operators, recently introduced a standby to enter the Strait of Hormuz to limit the length of its stay in the Persian Gulf, according to S&P Global Commodity Insights, citing a company spokesperson. Nippon Yusen's policy, which comes as part of a precautionary measure following the escalation of Isreal-Iran tensions since June 13, means ships are asked to pause for a day or a couple of days when there is flexibility in the shipping schedule, S&P Global Commodity Insights reported on Monday. The company has not implemented a navigation halt in the Strait of Hormuz, however. Japan's Mitsui O.S.K Lines also instructed vessels to limit time spent in the Gulf following U.S. strikes on Iranian nuclear facilities, Reuters reported Monday, citing a company spokesperson. Spokespeople at Nippon Yusen and Mitsui OSK Lines were not immediately available to comment when contacted by CNBC. German container shipping firm Hapag-Lloyd said it is continuing to sail through the Strait of Hormuz. 'However, the situation is unpredictable and could change within a matter of hours. In this case, our emergency and response plans, which we maintain as part of our crisis management system, come into effect,' a Hapag-Lloyd spokesperson said. Insurance costs to spike Peter Sand, chief analyst at pricing platform Xeneta, said container shipping activity in the Persian Gulf and upper Indian Ocean appears to be continuing as expected for now. 'All companies access the risk individually – but the current situation requires them all to do so several times a day. Staying in close dialogue with national intelligence agencies and their own captains onboard the ships,' Sand told CNBC by email. Insurance costs, meanwhile, have 'probably' been hiked again, Sand said, noting Iran's parliament reportedly approved the closure of the Strait of Hormuz. Any final decision to close the waterway rests with the country's national security council, and its possibility has raised the specter of higher energy prices and aggravated geopolitical tensions, with Washington calling upon Beijing to prevent the strait's closure. CNBC
CNBC
23-06-2025
- Business
- CNBC
Shipping groups avoid the Strait of Hormuz to reduce exposure after U.S. strikes on Iran
The number of vessels navigating the critically important Strait of Hormuz appears to be declining, according to the world's largest shipping association, amid deepening fears of a widening conflict in the Middle East. Jakob Larsen, head of security at Bimco, which represents global shipowners, said all shipowners were closely monitoring developments in the region and some have already paused transits in the Strait of Hormuz due to the deterioration of the security situation. His comments come shortly after the U.S. on Saturday attacked three major Iranian nuclear enrichment facilities, a massive escalation in its involvement with Israel's effort to cripple Tehran's nuclear program. Iran has condemned the attack, saying it reserves all options to defend its sovereignty and people. "Before the US attack, the impact on shipping patterns was limited," Bimco's Larsen said. "Now, after the US attack, we have indications that the number of ships passing is reducing. If we begin to see Iranian attacks on shipping, it will most likely further reduce the number of ships transiting through the [Strait of Hormuz]," he added. The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world's most important oil chokepoints. In 2024 and the first quarter of 2025, for instance, flows through the narrow waterway made up roughly 20% of global oil and petroleum product consumption, according to the U.S. Energy Information Administration. Around 20% of global liquified natural gas (LNG) also transited through the Strait of Hormuz last year, primarily from Qatar. The inability of oil to traverse through the waterway, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays. Yet, in the aftermath of the U.S. attacks on key nuclear sites, Iran's parliament reportedly approved the closure of the waterway, risking alienating its neighbors and trade partners. Andy Critchlow, EMEA head of news at S&P Global Commodity Insights, said some anecdotal evidence suggested a slowdown in shipping navigation through the Strait of Hormuz following the U.S. strikes on Fordo, Natanz and Isfahan. "The pace at which tankers are entering the Strait of Hormuz has definitely slowed. We have indications from shippers that they are putting tankers and vessels on standby, so they are waiting for an opportune moment to enter the Strait," Critchlow told CNBC's "Europe Early Edition" on Monday. "At the same time, there have been reports that suppliers of LNG, for example, in the Gulf have told lifters of LNG to wait before entering, so [as] not to loiter in the Gulf, keep vessels out of that region," he added. Japan's Nippon Yusen, one of the world's largest ship operators, recently introduced a standby to enter the Strait of Hormuz to limit the length of its stay in the Persian Gulf, according to S&P Global Commodity Insights, citing a company spokesperson. Nippon Yusen's policy, which comes as part of a precautionary measure following the escalation of Isreal-Iran tensions since June 13, means ships are asked to pause for a day or a couple of days when there is flexibility in the shipping schedule, S&P Global Commodity Insights reported on Monday. The company has not implemented a navigation halt in the Strait of Hormuz, however. Japan's Mitsui O.S.K Lines also instructed vessels to limit time spent in the Gulf following U.S. strikes on Iranian nuclear facilities, Reuters reported Monday, citing a company spokesperson. Spokespeople at Nippon Yusen and Mitsui OSK Lines were not immediately available to comment when contacted by CNBC. German container shipping firm Hapag-Lloyd said it is continuing to sail through the Strait of Hormuz. "However, the situation is unpredictable and could change within a matter of hours. In this case, our emergency and response plans, which we maintain as part of our crisis management system, come into effect," a Hapag-Lloyd spokesperson said. Peter Sand, chief analyst at pricing platform Xeneta, said container shipping activity in the Persian Gulf and upper Indian Ocean appears to be continuing as expected for now. "All companies access the risk individually - but the current situation requires them all to do so several times a day. Staying in close dialogue with national intelligence agencies and their own captains onboard the ships," Sand told CNBC by email. Insurance costs, meanwhile, have "probably" been hiked again, Sand said, noting Iran's parliament reportedly approved the closure of the Strait of Hormuz. Any final decision to close the waterway rests with the country's national security council, and its possibility has raised the specter of higher energy prices and aggravated geopolitical tensions, with Washington calling upon Beijing to prevent the strait's closure.
