Global trade uncertainty and new U.S. tariffs have significantly shifted the dynamics of the shipping industry in the first half of 2025. Owners are rethinking investments and routes amid rising geopolitical pressures and regulatory changes.
The offshore vessel sector is experiencing strong demand, with high utilization rates in the North Sea, Middle East, and Southeast Asia. Charter rates have surged, and second-hand vessel values have firmed, especially for high-spec anchor handling vessels.
Meanwhile, the liquefied natural gas (LNG) sector has come under pressure due to fleet oversupply and weakening seasonal demand. Charter earnings for large LNG carriers have dropped 66% year-over-year, pushing down asset prices and increasing vessel demolitions.
Newbuilding orders for large LNG carriers plunged 62%, while small-scale LNG vessel activity remained strong. China overtook South Korea as the top builder of LNG vessels for the first time in five years.
In contrast, the liquefied petroleum gas (LPG) sector has been weighed down by tariffs between the U.S. and China. Sale and purchase volumes fell by 25%, and newbuilding activity dropped by 80% compared to the same period last year.
Despite short-term volatility, long-term interest in cleaner fuels like LNG and LPG remains intact. The market will continue to evolve as owners adjust strategies in response to regulation, fuel costs, and shifting trade dynamics.
