Freight rates for Russian ESPO Blend oil loading from the Far Eastern port of Kozmino have jumped fivefold amid a lack of vessels after fresh U.S. sanctions cut availability of tankers, three
Freight rates for Russian ESPO Blend oil loading from the Far Eastern port of Kozmino have jumped fivefold amid a lack of vessels after fresh U.S. sanctions cut availability of tankers, three traders said and data showed.
Higher freight costs cut Russian oil sellers' revenues that are already under pressure from U.S. sanctions and complicated logistics, while a lack of vessels in the region during the winter season may lead to loading disruptions, traders said.
On Jan. 10 the U.S. imposed the toughest sanctions yet on the Russian oil industry, targeting major oil companies, Surgutneftegaz and Gazprom Neft, as well as more than 180 vessels.
The cost of oil shipping from Kozmino port to China on Aframax tankers, which can carry some 100,000 metric tons, has jumped to $6.5 million-7.5 million from $1.5 million on average at the end of the last year, traders said.
Freight rates for oil shipments from Kozmino to northern China's ports were at $6.5 million, and for southern ports at 7.5 million, according to Simpson Space Young data available via LSEG Workspace.
Freight rates for ESPO Blend oil shipments to India also jumped to some $9-10 million per one-way trip compared to below $3
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