How regional shipping dynamics in China are reshaping global trade

As one of the world’s busiest maritime hubs, Shanghai offers unique insight into how Asia’s shipping markets have evolved in recent years. Today’s landscape looks markedly different from just a few years ago - not only in terms of trade volumes, but also in how the region’s industries are adapting to volatility and opportunity. From energy imports to offshore recovery, the past three years have seen China’s maritime markets undergo significant shifts. 

We sat down with the team at Clarksons’ Shanghai office to gain some insight into Asia’s changing shipping landscape, understand how regional dynamics are reshaping global trade, and learn how these factors have influenced the services the team is delivering to clients.

Gas

The transformation of China’s gas sector over the last three years has been particularly striking. “LPG is a vital product that people rely on every day,” explains Kenneth Song, Head of Asia Product Gas, Clarksons Shanghai. “In 2024, China imported 35.6 million tonnes of LPG - a figure that has continued to rise over the past three years.” The growing number of domestic projects such as PDH and cracker units (which convert LPG into propylene, ethylene, and related materials) have further reinforced this upward trend.

China has now grown to become the largest LPG importer in the East - and has held this title for several consecutive years, with most cargoes sourced from the United States. However, recent tariff actions have disrupted this balance. “Due to the latest trade measures, the market has been under pressure as importers seek to secure non-U.S. LPG to avoid high tariffs,” notes Kenneth. “Despite the market instability we have experienced, demand remains consistent and once trade conditions stabilise, we expect to see further market opportunities.”

Offshore

The offshore segment tells a more cautious story. While there has been renewed confidence and the market is improving - as evidenced by speculative newbuilding activity in the subsea and OSV sectors - uncertainty still looms. Jack Qiu, Divisional Director, Clarksons Shanghai, explains: "Due to the uncertainty in the market, vessels on short - or long-term contracts has reduced. While orders for offshore wind SOVs are still coming through, the pace has moderated over the years."

Meanwhile, in the Sale and Purchase (S&P) market, most Chinese resale units from shipyards have now been absorbed and more second-hand OSVs are being withdrawn from the Chinese market and sold to international buyers.

Jack goes on to explain how this is playing out with clients: “We’re seeing some clients take the current market conditions as a good opportunity to invest in or build vessels, while others are opting to wait until the market shows clearer signs of recovery. As brokers here at Clarksons, our role is to find certainty within an uncertain market. Leveraging Clarksons’ extensive research and deep industry insight, we support clients on market direction and potential opportunities. By closely monitoring global developments and analysing performance across segments, we provide clarity and actionable strategies - both for the short and long term - so our clients can stay ahead in a dynamic market.

Tankers

The tanker market, meanwhile, continues to feel the effects of geopolitical volatility and shifting trade flows. As Ella Bai, Tanker Operator, Clarksons Shanghai, explains, “Compared to three years ago, today’s tanker segment in China is more unpredictable due to global conflict, sanctions, and changing routes. Ensuring the security of loading areas and transit routes is increasingly important. Looking ahead, evolving international conditions may lead to changes in port and canal operations, which in turn could have a significant impact on freight rates.”

Together, these developments paint a picture of a region in flux but full of potential. The Clarksons Shanghai team is perfectly placed to help clients capitalise on these opportunities due to the brokers’ proximity to these developments. Being embedded in the local maritime ecosystem allows them to interpret shifts in policy, pricing, and sentiment faster than most. This local perspective, combined with the global reach of the wider Clarksons Group, has made the Shanghai office a key partner for clients seeking clarity in complex times.

From container flows to tankers and gas, the message remains consistent: volatility is inevitable, but insight makes it manageable. With their deep understanding of China’s maritime currents, the Clarksons Shanghai team continues to steer clients through change, helping them not just adapt to an evolving marketplace, but to find and capitalise on opportunities in the process.

If you have a project in Shanghai which requires regional insight, or if you are interested in pursuing new opportunities in Shanghai, contact the team today.

Gas | Kenneth Song

Offshore | Jack Qiu

Tankers | Ella Bai