South Korea eyes building US LNG tankers: South Korean shipbuilder Hanwha Ocean is looking into building LNG tankers on US soil after the US advanced a proposal recommendingtaxing China-made vessels, Bloomberg reports. Under the proposal, five to seven US-flagged and US-operated LNG vessels could be built at Philly Shipyard by 2030, Hanwha’s VP of commercial shipping Ryan Lynch told Bloomberg. If finalized, the South Korean company will be the first to build LNG tankers in the US.

The challenges: There is currently no capacity to build LNG carriers in the US, with most being built in South Korea, Japan, and some in China. Nearly less than 1% of global LNG carriers are currently US-flagged, the newswire adds, citing an international group of LNG importers. “The proposed maritime restrictions — particularly the requirement to transport US LNG on US-built and flagged vessels — are simply not feasible… there are no such vessels in existence today, and building them would take decades, making compliance impossible for the industry,” Executive Director Charlie Riedl said.

ICYMI: The Trump administration is moving forward with fees on Chinese-built vessels stopping at US ports based on net tonnage or containers loaded. China-owned and operated ships face a fee of USD 50 per net ton, which will then be hiked by USD 30 annually over the next three years to settle at USD 140 by 2028. Non-Chinese firms will get more breathing room, however, with a smaller fee set at USD 18 per ton. The fee will then rise by USD 5 every year over three years.

China sends back two Boeing jets: Chinese airlines have sent back two Boeing 737 MAX jets that were due to delivery, Reuters reported, citing flight tracking data. The jets — which were in Boeing’s finishing center in China’s Zhoushan — were sent back to Boeing fields in the US territory Guam and Seattle.

The context: China ordered its airlines last week to stop taking Boeing jet deliveries and halt any acquisitions of aircraft-related equipment or parts from US companies. The move comes amid an intensifying US-China trade war that saw the Asian giant impose retaliatory tariffs of 125% on American products.

Boeing might find solace in Malaysia: Malaysia Aviation Group — the parent company of the country’s national carrier Malaysia Airlines — is currently in talks with Boeing to modernize its fleet and acquire jet delivery slots that have become available since China has stopped accepting deliveries, Bloomberg reports. Malaysia Airlines had ordered 60 Boeing jets this year to renew its narrowbody fleet.

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