Freight rates for transporting Russian oil are expected to rise as the winter season approaches and new sanctions against the Russian fleet, three traders said on Friday.
Britain has imposed the toughest sanctions yet against Russia's ghost merchant fleet. The new restrictions will particularly affect 30 ships that are part of the “ghost fleet”, used to export Russian oil by circumventing the Western embargo.
The number of tankers subject to British sanctions will therefore rise to 73.
The cost of Urals oil shipments from Primorsk, Ust-Luga and Novorossiysk to India remained stable for the second month in a row, due to sufficient supply of tankers and an expected reduction in oil shipments by sea in December, traders said.
“Freight rates are stable at the moment. There is enough tonnage, export volume is decreasing,” said one of the traders.
For the route between Baltic ports in Russia and western ports in India, the cost of transportation is $4.9-5.1 million per standard vessel, little change from at levels seen in October, traders said.
Another trader said the stability of freight rates could soon change as seasonal factors weigh on costs.
The need for tonnage for exporting Russian oil is also increasing with seasonal changes in shipping requirements: the ice situation in Russian Baltic ports will require ICE-class tankers, which are less available on the market, have declared the traders.
Weather conditions in the Black Sea also deteriorate over the winter, increasing costs, traders say. According to the Riverlake Agency, the costs of passing tankers through the Turkish Straits have reached their maximum since February 2024 and amount to approximately 10 days for the period from November 1 to 27.
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