Tag Archives: supply chains

China prepares retaliation playbook

China is taking preemptive action against the US’s plans to hike port fees for China-linked tonnage.  The port fees are scheduled to come into effect on October 14, but there haven’t been any administrative rules set yet.

So we don’t know how, or if, they will be collected.

Quite a few experts believe that there won’t ever be any. The box-booking platform Freightos is one source mentioned in the article. Trump has a history of putting penalties out there and giving way in negotiations just before they will go into effect. It’s known as the Trump Always Chickens Out (TACO) effect.

I agree that we may never see any container ship fees. But I am also wary of what Trump may be giving away in the negotiations with China.

And I think history tells us that we will see severe blowback in terms of various trade restraints placed by foreign nations. These will hurt American businesses.

 Sam Chambers September 30, 2025

https://splash247.com/china-prepares-retaliation-playbook-ahead-of-us-port-fee-deadline/

LNG bunker supply chain emissions

It’s difficult to quantify the emissions load generated by LNG bunkering for oceangoing ships. Rystad Energy has released a study of this from Well to Tank.

Liquefied Natural Gas (LNG) is currently an important maritime fuel as the industry tries to transition to a lower carbon footprint. LNG-fuelled ships now account for over 20% of the current order book.

The question is this: how does LNG perform in terms of greenhouse emissions? One needs to consider how it’s produced (Well!), transported, liquefied, stored, and processed for bunkering, as well as the loading process. That’s the study’s focus.

They found 13.9 grams of carbon dioxide equivalent per megajoule heating value, known as LHV. This broke down into 4.2 gCO23/MJ, for upsteam; 1.3 for transportation and processing; 5.9 for liquefaction; 1.8 for shipping and distribution; and 0.7 for bunkering operations.

The total of 13.9 compares with the FuelEU Maritime figure of 18.5 gCO2e/MJ, which Rystad says is too high.

A key quote from the article:

Rystad’s Vice President Emissions Research, Patrick King, commented: “Our analysis is based on asset-level data that ties specific gas fields to liquefaction facilities. This approach, supported by satellite-detected methane plume data and reported asset information, gives a more accurate picture of the LNG actually used for bunkering, rather than relying on outdated or overly broad averages.”

It seems like the right way to do the analysis.

The study is available from Rystad Energy or asoffered by Rystad

Seatrade logo

Paul Bartlett, Correspondent

September 4, 2025

https://www.seatrade-maritime.com/lng/rystad-releases-findings-on-lng-bunker-supply-chain-emissions

Pacific-Atlantic Rail Link: A Game Changer for China-Brazil Trade

The announcement of an agreement to build a Pacific-Atlantic rail link across South America is important to global commerce. If it actually succeeds, it would allow many goods to skip the Panama Canal in transit from Brazil to the Far East, including China.

The idea seems to be a combined intermodal and bulk rail line from the East Coast of Brazil to Chancay Port in Peru.

China of course imports bulk grain and oilseed cargoes from Brazil. Brazil also is home to some manufacturing which might be cheaper than Chinese manufacturing has become. And Brazil consumes many manufactured goods now as the country develops. China is an ideal source for these.

It’s called the “Two-Ocean Railway”. It should cut the China-Brazil trip to 10 days.

China is already investing $1.3B in Chancay Port in Peru. This railway will create guaranteed demand for the port’s capabilities.

In the light of President Trump’s tariff machinations and his threats surrounding the Panama Canal, it’s wise for the Chinese to create an alternative.

Brazil and China are an ideal trading pair to show comparative advantage at work; each nation produces what it’s best at, and trades for the other goods. The result produces lower costs for both parties, even including transport costs.

Katherine Si, China Correspondent July 15, 2025

https://www.seatrade-maritime.com/ports-logistics/china-and-brazil-plan-pacific-and-atlantic-rail-link