Russia oil freight rates to India hit record high in October
Freight rates for Russian oil shipments from western ports to India reached record highs in early October. The increase reflects heightened risks in the Black Sea and a continuing rally in the global tanker market, according to a Reuters report. The rising freight costs prevent Russia from fully benefiting from high oil prices, the report ...
In early October, freight rates for Russian oil shipments to India hit record highs, according to a Reuters report. The surge is attributed to heightened risks in the Black Sea and a continuing rise in the global tanker market, as stated in the report.
Russia faces challenges in maximizing profits from high oil prices due to the escalating freight costs. Most crude volumes from Russia's western ports must be transported to Asian markets, particularly India and China, through lengthy and costly export routes. As of now, freight costs for exporting Urals crude to Asia amount to approximately $30 per barrel or more, based on traders' insights and calculations.
The cost of transporting Urals crude from the Black Sea to India on Suezmax tankers, with an approximate deadweight capacity of 140,000 metric tons, has reached a record level of $27 million to $30 million per one-way voyage. This is a significant increase from around $19 million in September, according to traders.
The rise in Urals freight rates comes amidst record global hydrocarbon shipping costs, as reported by Investing.com.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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