The tanker and shipping industries are in-line for a major boost following the signing of phase one of the US-China trade agreement, according to a report by a leading shipbroker.
Gibson Shipbrokers, an international company with over 125 years of experience, said the recent signing of phase one of the US-China trade deal was a step in the right direction for the tanker industry.
“After nearly two years of trade tensions, the US and China have finally signed the long-awaited phase one trade deal, helping to ease economic fears and boosting market confidence,” Gibson said.
“For the tanker markets, the most critical part is the pledge made by China to step up purchases of US oil, gas and coal.”
The agreement will see China purchase an additional $200 billion worth of US goods over the next two years, while the US will slash tariffs on Chinese imports by half, from 15% to 7.5%.
As part of the agreement, China will commit $52.4 billion of the $200 billion to additional energy purchases, targeting 420 000 b/d (barrels per day) crude imports from the US this year, with a further 775 000 b/d expected to be imported in 2021.
“If China is to buy an extra 420 000 b/d of US crude this year and a further 775 000 in 2021, this would cover about 50% of the pledged energy purchase,” said Gibson.
The US and Chinese officials have vowed to commence a second stage of negotiations, which could lead to further tariff reductions and ease global trade.