American imports of used cooking oil from China are expected to accelerate sharply in the coming months, driven by stricter US biofuel-blending requirements and rising global energy prices linked to the conflict involving Iran.
Used cooking oil has become a critical feedstock for the production of renewable diesel and sustainable aviation fuel (SAF), both of which are central to US efforts to decarbonise its transport sector. With domestic supplies of waste oils insufficient to meet growing demand, refiners are increasingly turning to Chinese exporters to bridge the gap.
The latest US Environmental Protection Agency (EPA) blending mandates have raised the volume of biofuels that must be incorporated into the national fuel supply, prompting a fresh wave of buying activity. At the same time, geopolitical instability in the Middle East has tightened conventional fuel markets, making alternative low-carbon feedstocks even more attractive to American producers.
For freight forwarders and logistics operators, this shift signals continued growth in transpacific bulk liquid shipments, with used cooking oil emerging as one of the fastest-growing commodities in the renewable fuels supply chain.