US sanctions relief could lift tanker rates in Russia, inject capacity to Gulf shuttles: analysts
US sanctions relief on shadow-fleet tankers could redirect ships from Russian oil trades toward the Middle East, potentially raising Russian freight costs while easing some of the tanker shortages around the Strait of Hormuz, shipping analysts said. In recent public remarks, Energy Secretary Chris Wright said the US will allow legitimate businesses to acquire sanctioned ...
US sanctions relief on tankers could potentially alter tanker rates in Russia and increase capacity in the Gulf, according to shipping analysts. The US plans to permit legitimate businesses to acquire sanctioned tankers for non-sanctioned trades, aiming to reduce shipping costs. Currently, 1,226 oil and LPG tankers are sanctioned by Western authorities, with the US targeting VLCCs the most.
However, only 148 tankers are sanctioned solely by the US Office of Foreign Assets Control, with only 14 appearing idle for more than three months. Thus, sanctions relief may redistribute existing tanker capacity instead of releasing large amounts of idle ships. The "overwhelming majority" of ships that could become candidates for mainstream employment are already deployed in sanctioned trades, primarily carrying Russian clean petroleum products.
Transporting mainstream oil could increase tanker rates for Russian exports, but the extent of this impact depends on the length of any waiver. Additionally, some shadow fleet operators might use sanctions relief to sell their tankers in the current strong secondhand market. However, safety concerns remain, as most OFAC-listed tankers are at least 20 years old and may not meet mainstream safety, environmental, and insurance standards.
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.
