Tanker Freight Rates for Russian Crude to India Climb on Higher Seaborne Exports
LONDON: Tanker freight rates for shipping Urals crude from Russia’s western ports to India rose further in late September and early October, tracking a sharp increase in loadings last month, industry sources said.
The surge in exports is attributed to unplanned refinery maintenance, driving up demand for Russian oil. Indian refiners continue to buy Russian oil despite punitive U.S. tariffs on goods imported from India after it defied a demand for it to stop the Russian imports.
Freight Rates Climb Amid Increased Exports
Crude exports from Russia’s western ports of Primorsk, Ust-Luga, and Novorossiisk rose by 500,000 barrels per day in September from August to a record 2.5 million bpd. This increase has led to higher freight costs for transporting Urals from the Baltic ports of Primorsk and Ust-Luga to India for late October loading.
Freight costs for Aframax tankers have climbed to around $7 million, up from $6-6.5 million for one-way voyages in late August to mid-September. Suezmax tankers, which carry around 140,000 metric tons, saw rates rise to about $6.2-6.5 million, compared with roughly $6 million a month earlier.
Shadow Fleet and Greek Shipowners Involved
Sources told Reuters that both “shadow fleet” tankers and Greek shipowners are currently involved in transporting Urals from Russian ports. One trader noted, “The Greeks who were working are still working. No one has left the market.”
International Pressure Mounts
The Group of Seven nations’ finance ministers said on October 1 they would take joint steps to increase pressure on Russia by targeting those who are continuing to increase their purchases of Russian oil and those that are facilitating circumvention.
France’s detention of tanker Boracay, loaded with 100,000 tons of Urals crude sourced by Russian state company Rosneft from the port of Primorsk and destined for India‘s Vadinar port, is part of a new European strategy to block revenue funding Moscow’s war effort in Ukraine.
Original Article: Tanker freight rates for Russian crude to India climb on higher seaborne exports, sources say — Indiashippingnews