- Over 20 US-blocklisted tankers with 16 million barrels of oil are moored, disrupting global oil trade.
- Sanctions on 150+ tankers and traders have caused freight rate hikes and forced alternative oil sourcing.
- China and India remain key markets, heavily reliant on sanctioned Russian-origin crude.
The US expanded its crackdown on the “shadow fleet” of tankers facilitating oil trade from Russia, Iran, and Venezuela. With over 150 new additions to the blocklist, sanctions are reshaping global tanker routes and oil trade dynamics, significantly impacting freight rates and market stability, reports SP Global.
Sanctions Disrupt Oil Transport
On January 10, the US blocklisted over 150 tankers, bringing the total to 470 vessels. These tankers transported Russian-origin oil to China and India.
Additionally, there were sanctions for traders, insurers, and energy officials. It further destabilized the seaborne oil trade.
Anchored Ships and Trade Halt
20 sanctioned tankers are moored or anchored. They hold 16 million barrels of crude, clean products, and fuel oil.
These disruptions create logistical bottlenecks and threaten trade routes to key markets like China’s Shandong ports.
Freight Rates Skyrocket
Sanctions have caused significant volatility in freight rates. The VLCC market saw a 63% increase in rates since early January, driven by uncertainty and reduced tanker availability.
Regional shipping rates have similarly spiked, highlighting the market’s sensitivity to sanctions.
Shift in Oil Trade Patterns
China and India, the primary importers of Russian-origin crude, seek alternative supplies from the Middle East.
However, these adjustments will take time, with continued reliance on the sanctioned fleet in the interim.
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Source: SP Global
