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FREIGHT: Aframax Freight Rate for ESPO Crude to China Hits Record: Platts

FREIGHT
Energy BulletsChinaRussiaBulletAPACCommodities

The Aframax tanker freight rates on the Kozmino-to-China route transporting ESPO rose to a record high of $7m on Jan 21, a 324.2% increase from $1.65m on January 2, Platts said.

  • New sanctions against Russian entities have blacklisted over 180 ships, causing a surge in demand for non-sanctioned tonnage.
  • The average freight rate for this route was $560k from 2018-2021 but has remained above $1m since mid-April 2022.
  • The increase is due to a sharp decline in ship availability, as EU and UK sanctions on Russia discouraged many ships from calling at Kozmino.
  • Additionally, Shandong ports banned US-sanctioned tankers, further reducing available ships. Consequently, charterers are paying premiums for non-sanctioned tonnage.
  • Around 79% of ships loading ESPO crude in Kozmino between June-Dec. 2024 are sanctioned, exacerbating the tight supply.
  • This has driven freight rates to unprecedented levels and significantly disrupted the supply of Aframaxes, the primary ship type for transporting ESPO crude.
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The Aframax tanker freight rates on the Kozmino-to-China route transporting ESPO rose to a record high of $7m on Jan 21, a 324.2% increase from $1.65m on January 2, Platts said.

  • New sanctions against Russian entities have blacklisted over 180 ships, causing a surge in demand for non-sanctioned tonnage.
  • The average freight rate for this route was $560k from 2018-2021 but has remained above $1m since mid-April 2022.
  • The increase is due to a sharp decline in ship availability, as EU and UK sanctions on Russia discouraged many ships from calling at Kozmino.
  • Additionally, Shandong ports banned US-sanctioned tankers, further reducing available ships. Consequently, charterers are paying premiums for non-sanctioned tonnage.
  • Around 79% of ships loading ESPO crude in Kozmino between June-Dec. 2024 are sanctioned, exacerbating the tight supply.
  • This has driven freight rates to unprecedented levels and significantly disrupted the supply of Aframaxes, the primary ship type for transporting ESPO crude.