Company: DLNG
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001104659-25-033744
Chunk: 35

Company: Dynagas LNG Partners LP
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 35
---
 as a result of certain of our actions, such as our vessels failure to maintain their respective certifications with applicable maritime self-regulatory organizations.

Changes in the insurance markets attributable to terrorist attacks may also make certain types of insurance more difficult for us to obtain. In addition, upon renewal or expiration of our current policies, the insurance that may be available to us may be significantly more expensive or limited than our existing coverage.

We conduct business in China, where the legal system is not fully developed and has inherent uncertainties that could limit the legal protections available to us.

As of the date of this annual report, we have entered into sale and leaseback agreements for four of our vessels with a Chinese financial institution and may further enter into sale and leaseback agreements with Chinese counterparties in the future. Please see “ Item 5. Operating and Financial Review and Prospects - B. Liquidity and Capital Resources - 2024 Lease Financing.” Although our sale and leaseback agreements are governed by English law, we may have difficulties enforcing a judgment rendered by an arbitration tribunal or an English court (or other non-Chinese court) in China. Such sale and leaseback agreements, and any additional agreements that we enter into with Chinese counterparties, may be subject to new regulations in China that may require us to incur new or additional compliance or other administrative costs and pay new taxes or other fees to the Chinese government.

A recent proposal by the U. S. to impose new port fees on Chinese-operated vessels, Chinese-built vessels, non-Chinese companies operating Chinese-built vessels and companies with newbuilding orders at Chinese shipyards, and to restrict a percentage of U. S. products to being transported on U. S. vessels could have a material adverse effect on our operations and financial results.

The United States Trade Representative, or USTR, has recently put forward significant trade actions under Section 301 of the Trade Act of 1974 with the aim of addressing China’s dominance in the maritime, logistics, and shipbuilding industries. These proposed actions, should they be enacted, have the potential to dramatically increase the port fees and overall operating expenses for ships calling at U. S. ports. Specifically, the USTR is proposing a series of service fees that would function as direct increases to port-related costs.

Table of Contents

The proposal would include a service fee targeting Chinese operators of up to $1.0 million for each instance a vessel operated by a Chinese entity enters a U. S. port. Alternatively, the fee could be calculated at a rate of up to $