Shandong Port Group, which oversees major ports in eastern China such as Qingdao, Rizhao, and Yantai, has issued a ban preventing U.S.-sanctioned tankers from docking or unloading at its terminals.
According to Reuters, this move targets vessels on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) list, which includes tankers linked to the transport of oil from countries under U.S. sanctions like Iran, Russia, and Venezuela. These countries supply significant volumes of oil to Shandong, with the province importing 1.74 million barrels per day of such crude last year, accounting for around 17% of China’s total oil imports.
If enforced, the ban could increase shipping costs for independent refiners in Shandong who are major buyers of discounted sanctioned crude. The timing is critical as the U.S. continues to impose sanctions, further restricting the supply of oil from these nations.
This could lead to a squeeze in tanker availability, driving up logistics costs. Shandong Port, however, downplayed the impact, stating that most sanctioned oil is already transported by non-sanctioned vessels.
Despite this, analysts warn that the ban could still exacerbate existing challenges, including tight tanker availability and rising prices for Iranian crude, which recently reached their highest levels in years. Traders predict that refiners in Shandong may struggle with higher costs, while Washington’s ongoing efforts to restrict tanker access could further destabilize oil flows to China, the world’s largest oil importer, Reuters reports.
