Oil-derived gas carriers traveling from the United States to China have begun to divert to other countries due to the intensification of the trade war between the two largest economies in the world. Four shipments of propane have changed their routes from China to alternative destinations over the past week, heading towards countries like Japan and South Korea, according to a report by Vortexa analysis firm.
The United States exported about 310,000 barrels of propane daily to China in 2024, a figure that doubled the volume from the previous year, according to East Daley Analytics. Spot shipments of ethane could also be affected by the trade war, although committed shipments are harder to modify, a source indicated.
According to Vortexa, eight large gas carriers carrying U.S. LPG were still on their way to China this week, despite the fact that four shipments were diverted since April 17. Additionally, at least one shipment of ethane, used in plastics production, was completely discarded, according to a source close to the matter.
These diversions show the disruption of supply chains caused by the trade dispute between the United States and China, which has been a major buyer of U.S. ethane and oil gases in the past. Ethylene flows destined for Asia, used in plastics and industrial solvents, had already slowed down due to seasonal factors and could be further reduced by tariffs, the source added.
Among the diverted vessels are the Zakher, Maple Gas, BW Gemini, and Eiger Explorer, all departing from the U.S. Gulf Coast. On the other hand, the G. Arete, a propane transport ship, took a course to South Korea from China, while a chemical tanker named STI Notting Hill is also diverting to South Korea, according to Vortexa reports.
