Shipping rates for Russian Urals oil from the country’s western ports to India surged in August due to high tanker demand and security risks for vessels carrying Russian crude, three sources told Reuters.
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From $13 million to $20 million
According to them, the freight cost for a Suezmax tanker carrying about 140,000 tons of oil from the Black Sea port of Novorossiysk to India reached multi-year highs, rising to approximately $20 million, compared to about $13 million a month ago.
Traders noted that the sharp increase in rates is linked to increased drone attacks on tankers in the Black Sea, which regularly halt oil loading at the port of Novorossiysk.
According to sources, despite record-high freight prices, many shipowners are reluctant to sail to Russian Black Sea ports, fearing for the safety of crews and vessels.
“The market for shipments from Russian Black Sea ports is now extremely tight. Shipowners are demanding high risk premiums, and many of them prefer to avoid such voyages altogether,” said one trader.
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Rate increases are also observed on other Russian oil export routes.
More tankers needed in the Baltic Sea
According to sources, the cost of a one-way voyage for an Aframax tanker carrying about 100,000 tons of oil from the Baltic Sea port of Primorsk to India increased to an average of $13 million, compared to about $8 million at the beginning of July.
Traders state that demand for tankers in Baltic Sea ports has increased due to reduced loadings in Novorossiysk, as exporters seek to compensate for lost Black Sea volumes by increasing the load on Baltic Sea terminals.
India remains one of Russia’s largest oil buyers, receiving the majority of seaborne shipments that were diverted from Europe after the imposition of Western sanctions and changes in traditional trade flows.
