Rising security risks and global tanker market shifts have pushed Russian oil transport costs to unprecedented levels.
The increase in security risks in the Black Sea and the rise in freight rates in the global tanker market have driven the transportation costs of Russian oil to India to record levels. The cost of one-way oil transportation from the Black Sea to India using Suezmax-type tankers reached between $27 million and $30 million in October, while freight rates, which were approximately $19 million in September, increased by 42% to 58% within a month.
According to a Reuters report dated October 13, transportation costs for oil shipments from Russia's western ports to Asia have reached new records due to security risks in the Black Sea and the rise in the global tanker market.
Freight for Suezmax tankers approached $30 million.
According to sources in the oil trading sector, the freight cost for one-way voyages from the Black Sea to India using Suezmax tankers, which have a carrying capacity of approximately 140,000 tons, began to vary between $27 million and $30 million in October.
In September, approximately $19 million was paid for the same transportation service.
Thus, freight costs on the Black Sea-India route increased by between $8 million and $11 million within a month.
According to market sources compiled by Reuters, the freight cost for transporting Russian Urals oil to Asia reached around $30 per barrel or higher.
Mediterranean freight index doubled.
According to data from tanker brokerage firm Riverlake, the freight index for transporting approximately 140,000 tons of crude oil from the Black Sea to the Mediterranean rose to Worldscale 1002.5 in October.
This indicator was around WS500 in the second half of September.
Worldscale is an international index system used to compare freight prices in tanker shipping.
In addition to the rise on the Black Sea-Mediterranean route, freight indicators for intra-Mediterranean oil transportation also surpassed WS900 at the beginning of October, reaching record levels.
Transportation from the Baltic Sea to India also became more expensive.
The increases in freight rates were not limited to oil shipments originating from the Black Sea.
According to market sources, the one-way freight cost for Aframax-type tankers carrying approximately 100,000 tons of oil from Baltic Sea ports to India's west coast rose to between $21 million and $23 million in October.
In September, freight rates on the same route varied between approximately $13 million and $16 million.
It was reported that some shipowners made freight offers approaching $25 million for these voyages.
The cost of transporting Russian oil to Asia increased.
Russia is directing a significant portion of the crude oil it exports from its western ports to Asian markets, primarily India and China.
The long distances involved in these shipments have increased demand for tanker transportation while also causing transportation costs to rise.
Trade and maritime sources speaking to Reuters noted that the combination of security risks in the Black Sea and the increase in global tanker freight rates has driven the transportation costs of Russian oil to record levels.
It was stated that the rising freight expenses limit the revenue that Russian exporters can obtain from the increase in oil prices.
The rise in the global tanker market had an impact.
The increases in freight rates for oil shipments originating from the Black Sea and the Baltic Sea coincided with a period of rising transportation costs in the global tanker market.
According to maritime sources, the tightness in tanker supply, demand for long-distance oil transportation, and maritime security risks were the main factors affecting the freight market in the first half of October.
The record costs observed in transporting Russian oil to India became particularly evident in long-distance voyages using Suezmax and Aframax tankers.
Source: SeaNews Türkiye
