Sanctions have split the world’s tanker fleet in two. On one side, those that follow Western rules; on the other, those that don’t.
Russian crude restrictions are having the predicted effect on tanker trades, soaking up more vessel capacity as sailing distance lengthens.
Are falling commodity shipping spot rates the result of normal seasonality or a symptom of global economic malaise?
Sanctions on Russian crude exports have yet to boost tanker rates. Some question whether sanctions on Russian diesel will either.
The predicted boost to tanker rates from Russian crude disruptions has yet to materialize. Instead, rates have declined.
Just as the pandemic wound down, another market-altering event for shipping — the Ukraine-Russia war — ramped up.
Even if no oil moves under price caps, Russian exports could face deep discounts and continue to flow via “shadow tankers.”
Global energy trades face even more tumult ahead. “This could get crazy,” says Scorpio Tankers’ Robert Bugbee.
The Ukrainian aircraft manufacturer Antonov said it expects rebuilding the aircraft destroyed by Russian fighters to cost at least 500 million euros.
Some VLGCs carrying propane and VLCCs carrying crude have joined LNG carriers in shipping’s six-figures-per-day club.
