Local firms are reportedly flipping the shipment into third-party markets to capture stronger margins while avoiding U.S.-China tariffs.
China is reportedly preparing to re-export its first U.S. LNG (liquefied natural gas) cargo in more than a year, a sign that local buyers see better economics in selling the shipment abroad than bringing it into the domestic market. The cargo is being flipped to third-party markets to secure higher profits and avoid tariffs tied to U.S.-China trade frictions. The move highlights how commodity traders can redirect seaborne energy cargoes when price spreads and import costs make resale more attractive than delivery to the original destination.