Easing of US-China trade tensions met with worldwide relief

Markets responded positively this week as the US and China agreed to roll back tariffs for an initial 90-day period. Headline US tariffs on Chinese imports were cut from 145% to 30%, while Chinese tariffs on US exports dropped from 125% to 10%. Although earlier tariffs still apply, the de-escalation is seen as a net positive for global trade and sentiment, particularly for seaborne volumes.

Tanker market remains solid despite recent dip
In the tanker market, trends have been mixed, but signs of strengthening are emerging after the recent drop in rates two weeks ago. VLCC earnings saw an uptick, and the Suezmax segment has found a floor after recent short-term softness. Increased fixing activity this week has supported firmer sentiment, and OPEC+’s planned production ramp-up, expected to fully unwind the 2.2 mbd cut by October, could lift rates further. According to Arctic Securities, this would imply demand for 70 Suezmax equivalents (34 VLCCs) annually to handle the additional crude volumes.

High LPG expectations in the medium term
In the LPG market, rates have rebounded strongly. After briefly dipping below USD 10,000/day in April, spot rates now exceed USD 50,000/day, supported by resilient US propane exports despite limited domestic storage. With new US export capacity set to come online in the coming months, freight volumes are expected to rise into Q3, supporting earnings beyond the summer.