This week, we covered the first wrinkle in the price cap on Russian oil, the initial impact of Europe’s ban on seaborne crude imports from the country and the fall of the first container ship newcomer in the wake of the market crash — not to mention the CII getting trashed by Oldendorff and Braemar’s latest move.
Tanker gridlock is being threatened in Turkey’s Bosphorus Strait because, since 1 December, ships carrying crude oil through the waterway must produce a letter by protection and indemnity clubs stating explicitly that they’re covered by valid insurance during their voyage. According to information obtained by TradeWinds, 21 southbound laden tankers, several operated by major shipping companies, are stuck off Istanbul because of the issue since 29 November.
Meanwhile, we had a first glimpse of the material impact of the ban on Russian seaborne oil imports to Europe this week. Oil tanker traffic leaving Russian ports was down by half in the first two days after the European Union ban on seaborne imports, according to a vessel tracking service. About 1.94m barrels per day were shipped from Russia from 5 December with some believed to be heavily discounted cargoes bound for India.
We also saw perhaps the first victim of the container ship crash with the news that the UK High Court had appointed an administrator at Allseas Global Project Logistics, part of the Allseas Group freight and logistics company. Based in the northwest of England, the company launched a service between China and Europe at the height of the container shipping boom in mid-2021, through Allseas Shipping. As recently as June this year, Allseas fixed the 2,900-teu Windswept (built 2010) for three years, with delivery in August at around $47,000 per day.
Elsewhere, with implementation just weeks away, Oldendorff Carriers has released a scathing critique of the Carbon Intensity Indicator (CII), which it says can cause vessels to emit more greenhouse gases when they try to improve their rating. The German owner-operator’s 46-page research paper shows vessels actually emit more greenhouse gases when they take steps to improve their rating.
UK broker Braemar is continuing on the expansion trail after poaching the tanker team of Spanish shop Medco Shipbrokers. The James Gundy-led company is adding 10 experienced brokers in Madrid by forming a new company, Madrid Shipping Advisors.
