Russian oil transport costs surge amid "shadow fleet" sanctions
The cost of transporting Russian oil through the "shadow fleet" has tripled following the latest American sanctions package, Bloomberg reported on Thursday. Experts believe prices will continue to increase.
According to the agency, freight rates for transporting oil from Russia's eastern coast to China rose on Monday from around CAD 2.1 million to roughly CAD 7.2 million, or even CAD 7.9 million. Most ships on this route have a capacity of approximately 120,000 cubic metres.
Friday's American sanctions targeted two Russian extraction companies and over 100 tankers. According to the International Energy Agency, 25% of Russia's seaborne oil exports were managed by the "shadow fleet".
Sanctions impact Russia
The agency noted that the immediate impact of the sanctions was evident elsewhere. Data from companies monitoring ship routes indicated that several tankers transporting Russian oil anchored off the coast of China without unloading.
Ports in Shandong province, which hosts many refineries, began implementing restrictions preventing the unloading of "shadow fleet" ships even before the latest sanctions were imposed, the agency stated.
However, the sanctions primarily targeted ships carrying crude oil, not processed petroleum products. According to the International Energy Agency, last month, the increase in Moscow's revenues from fuel exports exceeded the decline in revenues from crude oil, the agency highlighted.
In fall last year, the "Financial Times" reported that the "shadow fleet" transported nearly 70% more oil than in 2023, increasing ecological risks. The "shadow fleet" consists of worn-out, aging, and underinsured tankers. As of June 2023, they transported 380,000 cubic metres of oil per day. By June 2024, this figure had risen to 650,000 cubic metres.
