The United States reportedly allows ethane to be shipped to China, but it cannot be unloaded in China without authorization

The U.S. Department of Commerce has reportedly notified relevant companies that ethane can be shipped to China, but it cannot be unloaded in China without authorization. Reuters quoted people familiar with the matter as saying that the U.S. Department of Commerce sent letters to Enterprise Products and Energy Transfer on Wednesday (June 25). The letter received by Enterprise Products reads: "This letter authorizes Enterprise Products to load ethane and ship it to foreign ports, including China, for berthing. However, such exports may not be completed to entities located in China without further authorization." Previously, the United States imposed licensing requirements on the two energy companies to export ethane to China. This regulation once interrupted shipments to China, causing related ships to be stranded or wandering in the waters off the coast of the Gulf of Mexico.

The report said that this letter may indicate that the United States is preparing to relax restrictions on exports to China from late May to early June. As the Sino-US trade war shifts from retaliatory tariffs to supply chain control, China has begun to issue rare earth export licenses to some companies and promised to speed up the approval process, and the United States seems to be close to resuming ethane exports to China.

But people familiar with the matter said it is still unlikely that companies would rush to load ethane onto ships and send it to China. If the ships arrive in China, it may be difficult to stop them from unloading, and companies could face fines of up to twice the value of the goods.

Doubts over Iran-Israel ceasefire hit energy bottleneck

Foreign media warned that the fragile ceasefire agreement between Israel and Iran is full of complications, making the closure of the Strait of Hormuz a real concern for the supply chain. Hours after the ceasefire was announced, US President Donald Trump angrily cursed Israel and Iran, and both sides apparently aimed missiles and bombs at each other again. Trump reserved most of his anger for US allies, saying that when he announced the ceasefire, Israel "dropped the largest number of bombs I have ever seen" and "I am not happy with Israel" after the ceasefire was announced but before the deadline for the ceasefire. Such fragility in the ceasefire will only cause further confusion and uncertainty in the global market, extending to the supply chain and the maritime sector, including the container shipping industry. If this truce cannot be sustained, and it currently appears extremely fragile, the expectation that Iran may threaten to block the Strait of Hormuz again may have major consequences for the maritime sector and the region.

Although the 12-day Israeli-Iranian war has been declared suspended, the subsequent impact and future uncertainty brought by the war are still fermenting, bringing more uncontrollable elements to the operation of international shipping and supply chains. The competition between China and the United States in trade is still going on.

Hanyue International recommends that shippers should still pay attention to relevant information in real time when planning sea transportation to avoid missing opportunities and wasting costs and time. Our company will flexibly select the most cost-effective transportation plan based on the needs of shippers to optimize your logistics costs to the maximum extent.

How do you view the changes in the international trade market after the Israel-Iraq War? Welcome to leave a message to discuss!