Northeast Asia has dispatched its first jet fuel cargo to Europe since the Iran war began, marking a significant trade development.
Northeast Asia has sent its first jet fuel cargo to Europe since the Iran war began in late February, reports Reuters.
Ship tracking data showed that approximately 745,000 barrels were loaded in Yeosu, South Korea, onto the Seriana between May 1-6 and were later transferred to the Yuan Lan Wan near the Strait of Malacca on May 18-21. The volumes are bound for France, according to LSEG data and trade sources.
The trading house Vitol chartered both vessels but did not provide any comments. Asia had not shipped jet fuel on this route since US-Israeli airstrikes on Iran on February 28 triggered the closure of the Strait of Hormuz, forcing refiners to prioritize regional demand.
Asia is a swing supplier of jet fuel to Europe, with average monthly exports last year reaching 1.5 million barrels. However, arbitrage spreads between Asia and northwest Europe have remained volatile, limiting shipments westward.
Sparta Commodities analyst James Noel-Beswick noted in a report dated May 21 that arbitrage opportunities for European jet supply remain tight, with Asian loading routes largely closed. Shipping costs from Singapore to northwest Europe are estimated at US$4 million, or about US$40 per metric ton.
Industry sources indicated that recent price spreads between Asia and Europe were approximately US$20-30 per ton, which is below shipping costs, effectively shutting down arbitrage opportunities.
