‘Crazy Good’ Shipping Bonanza
Experts including Vakulenko and traders in Russian oil say lower revenues coincide with higher profits for some middlemen.
After decades of little profit or loss, sections of the global shipping industry are enjoying a financial boom from the influx of Russian oil.
Those companies include Russian state shipper Sovcomflot, led by Putin aide Sergei Frank, and Greek shipping firms TMS Tanker Management, Stealth Maritime, Kyclades Maritime, Dynacom, Delta Tankers, NGM Energy and New Shipping.
Some Greek and Norwegian tanker owners sold their old vessels at record prices to shipping firms such as Fractal Shipping with owners in Dubai.
Saudi Arabia and the United Arab Emirates have refused to condemn Russia’s war in Ukraine and have stepped up cooperation with Moscow despite pressure from Washington.
All shipping companies declined to comment on any profit they might make from Russian oil.
Invoices seen by Reuters showed a shipper charged a Russian crude seller close to $10.5 million for a trip to carry a regular-size Aframax tanker with 700,000 barrels from a Baltic port to an Indian refinery in January. was charged
A year earlier, a similar trip would have cost a seller of Russian oil $0.5–$1.0 million, depending on shipping rates.
For the shipper, the running cost of such a voyage in today’s market is between $0.5-$1.0 million, meaning that a single voyage could net the shipper $10 million.
A trader in Russian crude described the tanker business as “crazy good”.
While tanker owners charge record high rates for Russian crude, refiners in India and China have also benefited from huge discounts.
India’s Russian oil imports have hit an all-time high of over 1.25 million bpd in recent weeks, meaning the country saves over $500 million a month on its oil bill, with Russian oil costing around $15 a barrel Sold at a discount of Rs.
Major Indian importers – IOC, HPCL, BPCL, Nayara and Reliance – declined to comment on discounts and profits.