Traders are increasingly turning to near-obsolete oil tankers to transport cargoes of Russian crude as sanctions targeting the nation’s petroleum revenues draw ever closer.
Since June, a total 17 crude cargoes have been collected from Russian ports by tankers that are at least 20 years old.
That’s an age when they reach the end of their normal working lives and owners consider selling them for scrap. It’s more than double the number of such shipments during the same period in 2021, according to data compiled by Bloomberg from Vortexa Ltd. The market is preparing for sanctions from Dec. 5 that will make shipping Russian crude trickier for owners, and insurance harder to obtain. There has been uncertainty about how the country will get its barrels to market, with an increase in
second-hand vessel transactions thought to be earmarked for the trade.
The retirement plan for old tankers always means scraping them because the metal was often worth more than the ship. Today retirement means be sold to a Russian friendly company and extending the life of the vessel past its serviceable date.Click HERE to subscribe to Fuller Treacy Money Back to top