2024.12.02

[SLOW] https://slowspace.io/ Flow Dakar STS

STS near Senegal facilitate Russian naphtha exports to Brazil

Traders are utilizing ship-to-ship (STS) transfers near Senegal's Dakar port to export Russian naphtha to Brazil, according to market sources and shipping data. This practice, aimed at optimizing tanker turnover and reducing Atlantic freight costs, has gained traction following the EU's embargo on Russian oil products and sanctions limiting vessel availability for Russian exports.

While direct monthly naphtha shipments from Russia to Brazil have dropped to 35,000 tons since September 2024, approximately 160,000 tons were shipped from Ust-Luga in Russia and transshipped near Dakar between September and November. These redirected supplies were all bound for Brazil.

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[SLOW] Oil Market North Sea Oil Price  Ural

Winter and sanctions to drive up freight costs for Russian oil

Freight rates for Russian oil are expected to rise due to winter conditions and new UK sanctions targeting Russia’s shadow fleet. The latest restrictions bring the number of sanctioned vessels to 73, affecting Russia’s ability to circumvent Western oil embargoes.

Currently, transportation costs for Urals oil shipments from Russian ports to India remain stable, at $4.9-$5.1 million per vessel, due to sufficient tanker availability and declining export volumes. However, this stability is likely temporary as seasonal challenges intensify. Ice conditions in Baltic ports will increase demand for scarce ICE-class tankers, and worsening weather in the Black Sea and longer delays in Turkish straits are further expected to drive up costs.

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[SLOW] Daily VLCC Market _ VLCC TCE comparison by routes

Chinese refiners shift focus from Iranian oil, creating opportunities for crude tankers

Independent Chinese refiners, traditionally reliant on Iranian oil, are diversifying their imports due to higher Iranian prices and tighter U.S. sanctions. This shift could increase tonne-miles for mainstream crude tankers, as refiners seek supplies from the Middle East and West Africa. One major Chinese refiner recently purchased 10 million barrels from Abu Dhabi and Qatar, equivalent to 10 Suezmax or five VLCC cargoes, with shipments scheduled for December and January.

Iran’s oil exports to China fell by 10% in November, while West African crude volumes reached a two-year high, driven partly by increased Iranian oil costs. Despite these dynamics, VLCC earnings have declined, with Middle East-to-Asia rates dropping 28% week-on-week to $23,600 per day, and West Africa-to-Asia rates falling 13% to $31,800 per day.

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[SLOW] Suezmax Market Monitor _ TD6, Black Sea-Med surge

Suezmax tanker rates surge amid market momentum shifts

Suezmax tanker earnings saw significant gains last week, with Clarksons’ fleet-weighted average rising 4.8% to $34,300 per day. Key routes drove the growth, starting with a 12.2% rise on the Black Sea-Mediterranean route, reaching $39,700 per day. Midweek, momentum shifted to the West Africa-Europe route, where eco rates surged 21.5% to $32,400 per day. By Friday, Black Sea eco-designed vessels led again, hitting $44,200 per day. The Guyana-Europe route is anticipated to strengthen this week after a slow Thanksgiving period. However, Suezmax earnings still trail 2023’s year-to-date average of $51,300 per day. Meanwhile, VLCC and Aframax markets softened, with declines of 18% and 5.8%, respectively.

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[SLOW] Tanker Fleet Study_ MR shipowners by fleet number

Nanjing Tanker boosts fleet with $252m order for four Panamax tankers

China’s Nanjing Tanker has announced a $252 million investment to enhance its fleet by ordering four newly designed 65,000-dwt Panamax tankers from Guangzhou Shipyard International (GSI). Each vessel will cost approximately $63 million and will meet IMO Tier III emission standards, with methanol dual-fuel readiness and bow thruster capabilities. The ships are scheduled for delivery between 2027 and 2028. This is the company’s third newbuilding order in recent months, following contracts for four 50,000-dwt product carriers and an 18,000-dwt chemical tanker, both aimed at optimizing fleet competitiveness and capacity. Nanjing Tanker operates 74 vessels and specializes in transporting crude oil, refined oil, chemicals, and gas.

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[SLOW] https://slowspace.io/ Trade Flow South Korea seaborne crude/oil products imports from US by cargo group

South Korea eyes increased US energy imports

South Korea’s trade minister, Ahn Duk-geun, has emphasized the need to boost energy imports from the US, citing their competitive pricing compared to Middle Eastern supplies. The government plans to incorporate this into its policy framework while encouraging private companies to align their strategies.

This move is partly in response to potential pressures from Donald Trump, who is set to return as US president in January. Trump has pledged to reduce trade deficits and expand US oil and gas production to achieve "energy dominance." South Korea is already exploring ways to increase its imports of US oil and gas as part of a broader strategy to adapt to these changing trade conditions.

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