Tankers: Replacing Russian Crude Oil Could Prove a Tricky Proposition
The tanker market is bound to face another round of shifts in trade flows, with EU’s seaborne imports of Russian oil, effectively banned henceforth. The increased ton-mile demand though, could prove to be beneficial for many tanker owners. In its latest weekly report, shipbroker Intermodal noted that “Russia is the world’s third largest oil […]
Navigating decarbonisation – contractual considerations
With mounting global efforts to combat climate change, the shipping and offshore sectors are subject to ever-increasing scrutiny and regulatory intervention. Reed Smith shipping partner Nick Austin and associate Eleni Pilaviou highlight the significant challenges of decarbonisation for shipowners and operators. To meet IMO’s target of reducing carbon emissions by at least 50% by […]
Tankers Vs Bulkers: Two Sides of the Same Coin?
Which is the existing pattern in the relationship between tankers and dry bulk carriers? In its latest weekly report, shipbroker Allied Shipbroking noted that “the extent to which the dry bulk and tanker markets are correlated has always been a topic of hot dispute and significant interest in the market, with mixed feelings and contrasting […]
European petroleum tanker rates rise due to geopolitical instability and marine fuel costs
Petroleum tanker rates for routes originating in Europe rose to record highs in April 2022 because of geopolitical instability related to Russia’s full-scale invasion of Ukraine and rising marine fuel prices, also known as bunker fuel. Dirty tanker rates for Aframax-sized vessels originating in the Black Sea in southeast Europe increased to $32.10 per metric […]
Decarbonisation a “secondary issue” for Shipping
Long asset lifespans, high energy dependency and limited viable alternatives make shipping one of the harder-to-abate sectors to decarbonise, according to Fitch Ratings. In a special report on long-term climate vulnerability, Fitch said that low margins mean there is a reluctance in shipping to heavily invest, especially into unproven technology. In a business-as-usual scenario, […]
Tanker Market Shows Mixed Performance During April
Suezmax and Aframax rates in April continued to outperform those in the VLCC class, with gains of 61% and 28%, respectively. Suezmax was supported by a strong market in the Atlantic Basin, while Aframax was supported by both the East and West markets, OPEC said in its latest monthly report. After a sluggish start to […]
Tankers: European Oil Trade Routes Are Being Redrawn
The tanker market is in ever shifting waters, as the existing conditions are redrawing crude oil trade routes. North Sea oil production could return into play, while Urals exports are expected to move to the East. In its latest weekly report, shipbroker Gibson said that “the combination of high oil prices and the need to […]
Russian Crude on Tankers is the Highest on Record
In what seems like a paradox, amid the current environment, the volume of Urals crude currently held on tankers, is the highest level since records began in 2016”. In its latest weekly report shipbroker Gibson noted that “it has been almost two months since Russia invaded Ukraine. Over this period, we have seen several rounds […]