Monday, June 5, 2023
HomeHeadlinesAsian Aframax freight for shipping Far East Russia ESPO crude nearly double


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Asian Aframax freight for shipping Far East Russia ESPO crude nearly double

The freight rate for hauling Russian ESPO crude from the Far Eastern port of Kozmino to North China soared following Moscow’s invasion of Ukraine on Feb. 24, tanker market sources said March 2.

According to latest shipping fixtures, the lumpsum freight for chartering an Aframax-class tanker on the Kozmino to North China route is being reported in the $825,000 to $850,000 range, which is almost double the last done fixture.

While many market participants are taking a wait-and-see approach in concluding tanker fixtures on this route, two fresh trades were widely reported with Chinese charterer ChemChina provisionally hiring the Mandala basis March 12 laycan for shipping 100,000 mt of ESPO Blend crude at $825,000.

Another reported fixture involved Chinese charterer Unipec placing the Kriti Verano on subjects for March 10 laycan at $850,000.

Since Russia started its military operations in Ukraine, market participants paused to assess the legal, financial, administrative, and operational implications involved in loading Russian crude.

Tanker market watchers said that owners were earlier reluctant to make any offers on their tonnage for this particular business, while the market continued to look for clarity regarding the trade out of Kozmino. The sources added that a few owners, after obtaining permissions from their internal compliance teams, began making offers which commanded high premiums for loading ESPO Blend crude.

Given that currently two non-Russian owned Aframaxes have been placed on subjects for loading out of Kozmino, sources said, other owners, too, may consider offering their ships for this trade.

“With good earnings [being seen] on this route, there will be owners who can consider [Kozmino cargoes],” a charterer based in the Far East said.

“[One] still needs to see if [there are] any issues on these shipments,” an Aframax owner added.

A shipbroker said there are still other owners who are refusing to touch Russian crude cargoes given the current situation.

With March and April EPSO crude trading cycle completed, market sources said the attention is now on the May trading cycle.

The Chinese independent refiners, who favor the Russian ESPO Blend crude, have decided to halt their purchases until there is more clarity on the implications of banking sanctions. Some of China’s top state-owned banks are taking precautionary measures and have stopped issuing Letters of Credit for trading, or purchasing, of Russian commodities, S&P Global Commodity Insights earlier reported.

Source: Platts

Related Posts


Finance & Economy
Shipping News

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

CMA CGM Profit Eases as Container Transport Demand Wanes

CMA CGM expects its profit to ease further for the rest of the year after a first-quarter decline, as an uncertain economy and influx...

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Baltic index hits over 3-month low amid lower coal imports

The Baltic exchange’s main sea freight index extended losses for the 15th session straight...

Baltic index falls for the month as vessel demand wanes

The Baltic exchange’s main sea freight index recorded its first monthly decline in four...

North Korea missile tests endanger shipping, UN maritime agency told

North Korean missile tests are endangering the safety of commercial shipping in busy sea...

Singapore Clamps Down on Tankers as Dark Fleet Grows

Singapore’s detentions of oil and chemicals tankers have surged since early last year, highlighting...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...