In response to the evolving geopolitical landscape and the introduction of sweeping US trade tariffs, the International Tank Container Organisation (ITCO) has announced it will release a series of Bulletins to analyse the implications for the tank container sector. This initiative comes as recent US policy decisions begin to significantly reshape global supply chains.

Trump Administration’s “Reciprocal Tariffs” Now in Effect

In April 2025, the Trump administration reintroduced “reciprocal tariffs,” aimed at levelling perceived trade imbalances with key international partners, particularly China. These tariffs have wide-ranging implications across international logistics and have already begun to affect the tank container market—an industry heavily reliant on the movement of bulk chemicals and petroleum products.

Industry-Wide Consequences

Tank container operators are experiencing notable disruption due to the changing trade environment:

• Trade Volumes Decline: Tariffs are inflating product prices, suppressing demand, particularly for chemical and oil-based cargoes, the core commodities of the tank container sector.

• Rising Operational Costs: Shipping companies now face significantly higher costs, translating to increased freight rates and weakened global competitiveness.

• Supply Chain Rerouting: To mitigate the effects of tariffs, many carriers are altering routes, diverting shipments through alternative ports or countries. While this may offer short-term relief, it complicates logistics and introduces delays and uncertainty.

Immediate Market Responses

The market has reacted swiftly to the changes:

• Pre-Tariff Stockpiling: A short-term spike in volumes occurred as companies rushed to move goods before tariffs took effect.

• Contractual Revisions: Many operators and customers are renegotiating supply agreements to manage risk and cost volatility, potentially triggering legal and financial complexities.

Long-Term Planning Required

ITCO warns that the tank container industry is entering a period of structural adjustment. Industry stakeholders are advised to closely review risk management frameworks, update contractual terms, and remain alert to new trade policy developments. Flexibility and foresight will be essential in navigating the months ahead.

USTR Imposes Fees on China-Linked Vessels

On April 17, 2025, the United States Trade Representative finalised new maritime fees following a Section 301 investigation into China’s shipbuilding and logistics industries. The measures, which take effect from 14 October 2025, will apply to Chinese-built, owned, or operated vessels arriving at US ports.

Key fee structures include:

• Chinese-Owned or Operated Vessels: Fees will begin at USD 50 per net tonne, rising incrementally to USD 140 per net tonne over three years.

• China-Built Vessels: Fees will start at USD 18 per net tonne, increasing to USD 33 per net ton, or alternatively USD 120 per discharged container, increasing to USD 250—whichever yields the higher amount.

These levies will be collected at the vessel’s first US port call, further increasing shipping costs for Asian routes and placing pressure on tank container logistics involving China-built ships.

Strategic Insight: A New Trade Era

In light of the new trade paradigm, the ICIS Chemical Think Tank Podcast recently highlighted the importance of market and customer-centric strategies:

• Traditional trade routes are fragmenting. For example, US polyethylene exports to China—accounting for 20 percent of output—are expected to halt.

• Aromatic and styrenics flows may be disrupted as import-export dynamics shift.

• China’s reliance on US ethane and propane is now in question, prompting the search for alternative suppliers.

• US manufacturers, including automakers, face deep uncertainty, inhibiting long-term planning.

Outlook: Customer Focus More Crucial Than Ever

The fundamental issue now is not supply—but demand. As trade patterns reconfigure, demand remains volatile and price-sensitive. ITCO underscores the importance of maintaining strong customer relationships, improving flexibility, and closely monitoring geopolitical developments to stay competitive in this new era of trade uncertainty.

The coming months are likely to bring further change. ITCO’s upcoming Bulletins will continue to analyse developments, helping members navigate the ongoing volatility.

For more information visit www.international-tank-container.org