Chinese refineries adapt to costly sanctions workarounds
A ship subject to American sanctions, after an extensive search for a port to receive Russian oil, was finally accepted in China. Current events illustrate how supply chains are adapting to U.S. sanctions, notes Bloomberg.
According to ship tracking data provided by Bloomberg and Kpler, an Aframax-class ship named Huihai Pacific finally unloaded nearly 122,000 cubic metres (770,000 barrels) of ESPO oil in China.
Independent Chinese refineries, often referred to as teapot refineries, concentrated in Shandong province, have so far been eager recipients of ESPO and Sokol oil from the Russian Far East due to favourable discounts and brief transport times, notes Bloomberg.
However, in the current climate, they may be obligated to cover significantly higher transportation costs to continue their purchases.
Initially, Huihai Pacific was supposed to reach Dongjiakou, a port in Shandong, but it ended up spending almost four weeks at sea, far surpassing the usual travel time from Kozmino to China, which is normally less than a week.
Current events demonstrate how supply chains are being reconfigured in response to U.S. sanctions, reports Bloomberg.
