Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Copper Tip Energy Services
Vista Projects
Hazloc Heaters
Copper Tip Energy
Vista Projects


Shippers Still Willing to Touch Russian Crude Oil Are Cashing In


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) A handful of shipowners still willing to transport Russian crude are reaping big rewards on at least one route as others shun the trade.Shippers can earn around $1.6 million hauling Russian ESPO oil on a small tanker from the eastern port of Kozmino to China, said shipbrokers. That’s around triple the amount prior to the invasion of Ukraine, based on data compiled by Bloomberg. The lucrative trade has become a regular fixture for vessel owners from China, Turkey and Greece, they added.Russia’s invasion of Ukraine has led to fewer shipowners handling the OPEC+ producer’s crude oil on concerns about reputational damage or running afoul of financial sanctions. Almost all recent exports of ESPO have been transported to, or are bound for Chinese ports, with the occasional shipment going to India.

China’s Cosco Shipping Holdings Co. is among the most active in the ESPO trade alongside Russia’s Sovcomflot, data compiled by Bloomberg and shipbrokers show. Active Shipping & Management Ltd., BEKS Ship Management & Trading SA and Dynacom Tankers Management Ltd. from Turkey are still hauling the grade, along with Greek companies Avin International Ltd. and Estoril Navigation Ltd.

The shipping companies didn’t respond to emails seeking comment.

It usually takes about five days to haul ESPO to China on an aframax tanker, making it one of the more profitable routes globally, said shipbrokers. The short transit time means ships have little downtime when sailing back empty to Kozmino, thus increasing their utilization rates and profits, they added. An aframax can carry about 730,000 barrels of crude.

GLJ
GLJ

Those shippers still in the ESPO trade are capitalizing on high profits before new European Union sanctions kick in, after which there will be more scrutiny on dealings with Moscow.

The Group of Seven nations last week discussed different ways to maintain global oil supplies while limiting Moscow’s revenue. A proposal, which included price caps and restrictions surrounding access to insurance cover and shipping services, was floated although no decisions have been finalized.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE