Tanker markets would face “minimal” disruption in the unlikely event that the Taiwan Strait was closed due to military conflict, said Barry Rogliano Salles.

The French broker’s comments come in the wake of tensions ramping up in the region following the visit of US House Speaker Nancy Pelosi to Taipei last week.

“Although there would undoubtedly be an insurance premium placed on tankers voyaging in the region, analysis suggests that the net impact in ton mile demand would be negligible as the difference between shipping a cargo from Singapore to Northern China is only eight hours shorter when passing through the Strait compared to voyaging via the western side of Taiwan,” BRS said.