U.S. Tanker Stocks Surge After Pentagon Blacklists Major Chinese Maritime Players

U.S.-listed tanker stocks rallied sharply on Tuesday, with some shares jumping as much as 10% after the Pentagon added several Chinese maritime giants to its list of companies with alleged military ties to China’s People’s Liberation Army.

The U.S. Department of Defense’s updated “Chinese military companies” list now includes industry heavyweights including China State Shipbuilding Corporation (CSSC), COSCO Shipping, China National Offshore Oil Corporation (CNOOC), and CNOOC International Trading, which engages in the international trading of oil and gas products, among other firms.

While the designation carries no direct penalties, it sends a clear message discouraging American businesses from engaging with these entities.

Leading tanker operator Frontline Plc (FRO) saw the most dramatic gains, with shares climbing 10.30% to close at $15.74. Scorpio Tankers (STNG) followed closely behind, rising 9.07% to $52.54. Teekay Tankers (TNK), International Seaways Inc. (INSW), DHT Holdings Inc. (DHT), and Nordic American Tankers Ltd. (NAT) all ended the day up between 6% and 7%

Industry experts warn the new designations could have far-reaching implications for global maritime trade.

The move represents a significant escalation in Washington’s efforts to curtail Chinese influence in critical maritime sectors, though it risks further complicating global supply chains and trade relationships. Industry stakeholders worldwide are now forced to reevaluate their partnerships and ensure compliance with U.S. regulations.

In another significant development for the tanker sector, Reuters is reporting that China’s Shandong Port Group issued a notice on Monday banning U.S.-sanctioned oil vessels from its ports, according to three traders. The move could restrict blacklisted vessels from accessing major terminals along China’s east coast, signaling greater enforcement of U.S. Office of Foreign Assets Control (OFAC) sanctions on Iran and Russian shadow fleet vessels.

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