While one group of tanker owners is courting the risk premium of the Russian export trades, others are finding it difficult to back out.
Norway’s Viken Shipping and Bergen-based Utkilen and the Hansa Tankers pool are among the Norwegian tanker owners trying to deal with the consequences of the Russian-Ukrainian war.
But Denmark’s Norden, whose Norient Product Pool includes several Viken ships, has ruled out new Russian business.
Besides ships already loaded before the outbreak of hostilities, Viken’s 113,500-dwt Solviken (built 2007) had as of 4 March just proceeded in ballast to a jetty at Russia’s major Black Sea port of Novorossiysk.
Market sources and AIS tracking data point to Greek owners as the big players in the risky but lucrative Black Sea and Baltic export trades, following the effective exclusion of Russian-owned tonnage from many foreign ports.
But Tom Steckmest-controlled Viken stood out as the Norwegian tanker owner with the greatest Russian exposure at the end of the first week of fighting in the Russo-Ukrainian war.
The long-term charter-oriented owner has two laden aframaxes underway from St Petersburg to Houston and Rotterdam, besides Solviken just making berth at Novorossiysk.
On 4 March, Viken’s 112,900-dwt Breiviken (built 2018), reportedly under charter to TotalEnergies, was near Rotterdam with a cargo loaded at Primorsk and its 113,500-dwt Kronviken (built 2006) was bound for Houston after loading at Ust-Luga for an unknown charterer.
Viken also has two MR1 product tankers in the Black Sea, one of which was trading Russian cargos regionally until the outbreak of hostilities. The 37,900-dwt Utviken (built 2009) and 37,900-dwt Norviken (built 2010) both trade in Norden’s Norient Product Pool. In February the Utviken carried two cargoes within the Black Sea from Novorossiysk and is now at Constanta in Romania, while the Norviken recently passed the Bosporus in ballast bound for Bulgaria.
Viken Shipping chairman Hans Olav Lindal told TradeWinds that the movements of Viken’s fleet are up to its charterers, but Viken is minding its cancellation clauses.
“We are not involved in decisions on where the ships are physically trading or with the cargo they carry, as long as the operations are within the limits defined in the charterparties, which are internationally recognised standard clauses applicable for worldwide trade,” said Lindal, who is a maritime lawyer as well as a shipowner.
“This also includes war and sanctions provisions, enabling the owner to cancel the charter if and when such situations materialise. We are closely monitoring developments with respect to the latter risks. We also liaise closely with our insurers and the charterers in this regard.”
‘Happy not to participate’
Norden’s head of tanker operator Soren Huscher told TradeWinds the Norient Product Pool like other branches of the company is not taking on new Russian exposure.
“We’ve made a decision not to do any new business with Russian accounts or in Russian ports. There is one account we have to fulfill with one of the big Russian traders, but we have ceased to do any new Russian business,” Huscher said.
He pointed out that an owner cannot cancel business without a valid cause, even if concerned about potential future sanctions.
“We would have legal exposure for cancelling a contract if we are already committed,” he said.
But Norden is content to pass up the high premiums currently on offer for new Russian business.
“We can see that others have hugely benefitted from trading out of the Black Sea,” Huscher said. “We feel privileged to be in a position to make a decision not to trade in these areas.”
Loading in a hectic period
Meanwhile, one of Viken's Bergen-based neighbours in the chemical carrier trades, Utkilen, was caught with a one-ship exposure.
As of 4 March an Utkilen tanker was near Busan, set to discharge a cargo from Vanino in the Siberian Far East.
Utkilen chief financial officer Christian Bjelland told TradeWinds the 19,800-dwt Straum (built 2010) had loaded “in the middle of a hectic period” amid the outbreak of hostilities and proceeded to South Korea.
As with Viken, Utkilen’s trading of that ship is not handled in house, and Bjelland referred further questions to Hansa Tankers, also of Bergen. Hansa’s pool business is largely spot rather than contracts of affreightment, Bjelland said, so there was little danger of long commitments to Russian cargos.
Hansa Tankers chief executive officer Hans Solberg said his company has decided not to comment on matters related to the Ukrainian conflict.
