Buyers of white oils and specialty oils are facing another month of shifting inputs as tariff extensions, carrier surcharges, and Gulf-route insurance costs continue to affect landed cost and lead times. Here’s what has changed since August and how to protect your margins now. Questions? Contact us.
This month’s roundup distills the developments most likely to touch white oil and other specialty-oil invoices and schedules for U.S. buyers.
We highlight policy moves, freight and insurance dynamics on key lanes, and the practical plays you can run immediately.
Citations below point to primary or industry-standard sources.
Suzanne Kingsbury, Director of Quality
Tariff & Policy Changes To Watch
Several official actions since August tilt near-term risk in nuanced ways—some easing pressure, others adding headline uncertainty.
- China 301 exclusions extended. The U.S. Trade Representative extended certain Section 301 China tariff exclusions through November 29, 2025 (previously set to expire August 31). If your SKUs rely on an active exclusion, that buys time—but verify HTS alignment and broker coding on each entry.
- Canada unwinds most counter-tariffs on U.S. goods as of September 1st. Ottawa removed most 25% counter-tariffs imposed in March, while leaving steel, aluminum, and autos in place pending talks. Expect some cross-border cost relief on non-listed items. Documentation still matters for CUSMA/USMCA claims.
- New tariffs on India may apply to white oil imports: In addition to the standing 25% tariff on imports from India, Washington imposed an additional punitive 25% in August in retaliation for purchasing oil from Russia, and has urged G7 and EU partners to consider their own tariffs to follow suit, and to target China as well. White mineral oils are not excluded from the base 25%, and the additional 25% may stack, so check your specific application—and consider on-shoring your supply chain to avoid these duties.
Freight, Insurance & Routing: What’s Adding To The Delivered Cost
Route risk and seasonal capacity shifts continue to nudge invoices. Even small percentage add-ons can erase supplier-side savings.
- Gulf/Hormuz war-risk premiums: Still elevated vs. pre-June. The last widely reported range was ~0.35–0.45% AP (additional premium) for seven-day Gulf calls after late-June softening, with underwriters staying cautious.
- Red Sea/Suez detours persist. Major lines remain cautious, keeping many services diverted around the Cape of Good Hope. This means longer voyages, higher fuel burn, and schedule variability.
- Peak-season effects. Carriers have announced PSS (peak season surcharges) and blank sailings—departure cancellations—into October. Budget for intermittent GRI (general rate increase)/PSS line items tied to Asia origin schedules, especially during China’s Golden Week (October 1-7) around its National Day.
- Panama Canal: Operations steady, slot availability adequate. The Canal’s August 2025 operations summary shows healthy utilization of capacity, suggesting fewer bottlenecks than during the 2023–24 drought.
- Hurricane season context. NOAA’s outlook points to above-normal 2025 Atlantic activity, even though early September has been quiet. Late-season spikes can still disrupt Gulf/Southeast ports, so build slack into schedules.
Why This Matters for White Oils and Other Specialty Oils
A tariff extension here and a small surcharge there rarely move the market alone. In combination, they reset your landed cost and timing. Here are a few concerns to bring up with your supplier:
- A modest war-risk add-on or PSS can wipe out savings negotiated on FOB (free on board—seller is responsible for loading goods on the vessel) or ex-works basis (seller’s duty ends earlier, at the pick-up site), especially where small lots, hot shipments, or port diversions are involved.
- White oils destined for pharma, food, and personal-care often travel on lanes sensitive to Gulf or Suez alternatives, and documentation delays (e.g., HTS or origin proofs) can cascade into rebooking, detention/demurrage (container movement delayed, incurring penalties), or split shipments.
- Chemicals watch-list. Ongoing AD/CVD (anti-dumping/countervailing) actions, e.g., recent orders on hexamine and preliminary determinations on MDI (methylene diphenyl diisocyanate), can ripple into additives, packaging resins, and intermediates that ride with or support specialty-oil supply chains.
What To Do Now: September Buyer Playbook
Control the variables you can, and assume some lag between policy headlines and invoice reality.
- Double-check your codes. Confirm the HTS (Harmonized Tariff Schedule) code for each SKU and get written confirmation from your customs broker about whether any Section 301 tariff exclusion applies to that item.
- Price out different scenarios: Change the origin, the port pair, and the route. For example, compare sailing around the Cape of Good Hope versus using the Suez/Gulf route. Then line up carrier calendars for PSS (peak season surcharge) and GRI (general rate increase) with your vessel ETDs (estimated times of departure).
- Lock in flexible contract language. Add wording in your purchase orders and contracts that allows for war-risk surcharges and route changes. Use the BIMCO (Baltic and International Maritime Council) 2025 war-risk clause as a model.
- Add time where routes are riskier. If your shipments pass through the Middle East Gulf (Persian/Arabian Gulf), build extra time into the schedule. For cargo arriving to the U.S. East or Gulf Coast via the Panama Canal, ask your forwarder to confirm a booking slot is secured and that the canal draft (allowed ship depth) fits your vessel.
- Monitor late-season storm windows. Watch late-season hurricanes that can hit Gulf of Mexico and Southeast U.S. ports, and hold a bit of backup stock at inland DCs (distribution centers) to cover delays.
Special Focus: White Oils — Supplier Sourcing & Compliance Moves
White-oil buyers have little tolerance for delay and contamination risk. Your supplier should be taking a few proactive steps to keep entries clean and deliveries on time.
- Keeping paperwork pristine. Your white oil supplier—especially for USP/NF or food-grade—should make sure your CoA (certificate of analysis), lot traceability, labels, and codes are perfect. Include the right HTS (Harmonized Tariff Schedule) code and any USMCA proofs. Ask your broker to pre-check everything so you avoid holds and re-files.
- Keeping our options open. Your supplier should be booking alternate discharge ports (Gulf and East Coast) to pivot around storms or tight booking slots. They should also confirm drayage (port/rail-to-facility trucking) and tank/warehouse capacity for each option.
- Pricing the extras ahead of time. Savvy suppliers ask insurance carriers for written estimates that include war-risk AP, PSS, and any GRI that might land in the ETD/ETA window, then use those numbers to set accurate budgets and customer pricing.
- Protecting product integrity. Experienced white oil suppliers like Renkert Oil use dedicated, food/pharma-grade tanks and hoses, get clean-out certificates, avoid co-mingling, and schedule quality control (QC) sampling as soon as the load arrives. This allows us to release products quickly and avoid demurrage/detention penalties.
How Your White Oil Supplier Renkert Oil Helps You Control The Variables
When markets shift, you shouldn’t have to.
Renkert Oil keeps your plan steady with supply options that include U.S.-origin white oils and multi-origin specialty oils, plus routing agility that lets us pivot around storms, bottlenecks, and schedule changes without drama.
- Flexible sourcing (U.S.-origin and multi-origin options) to avoid high-tariff lanes when feasible.
- Multiple in-house production locations to offer custom and specialty formulations. (Such as our highly technical work with Fermilab on this unique project.)
- Routing agility & terminal choice to pivot around storms, slot scarcity, or regional congestion.
- Broker-ready documentation (HTS/USMCA/FSMA) that helps prevent avoidable holds.
- Blanket orders and scheduled releases that stabilize cost and flow through uncertain weeks.
Our teams handle the details so you can see risk coming and act before it hits your margin. In short, we do the heavy lifting so your deliveries stay predictable and your operation keeps running smoothly.
Let’s model your landed-cost scenarios for white oils and your broader specialty-oil slate—then lock in the best path for you.
Contact Renkert Oil now to get started.