Crude tankers from Russia, Liberia on way to Indian ports

MUMBAI: Even as tensions continue to disrupt shipping routes in the Persian Gulf, two crude oil tankers have safely crossed the Strait of Hormuz and are heading towards Indian ports, offering a measure of relief on energy supplies. The Liberian-flagged tanker MT Smyrni is expected to arrive at Mumbai port on Saturday carrying about 1.4 lakh metric tonnes of crude oil. Another vessel, the Indian oil tanker, Jag Prakash, transporting around 50,000 metric tonnes of crude, has also crossed the strait. According to information, Jag Prakash is likely an Africa-bound vessel and there is no confirmation yet if it will be diverted to India by paying additional premium.

Shipping sources said the movement of these vessels is significant as at least 37 Indian ships remain impacted in the conflict-affected region. Industry analysts said India could see some near-term relief in crude supplies as several tankers carrying Russian oil – including vessels from the so-called “shadow” or “ghost” fleets – are also changing course mid-voyage and heading towards Indian ports after the US announced a waiver allowing the resumption of oil imports from Russia. Shadow fleets, also referred to as dark fleets, comprise tankers operating outside the conventional regulatory framework governing global maritime traffic and are often used to transport sanctioned oil cargoes. Vessel-tracking data indicate that at least four tankers have already diverted towards India. These include a non-sanctioned Very Large Crude Carrier that is part of the shadow fleet. Two of these vessels were originally headed for China after loading crude from Russia’s Far East but altered course mid-voyage, sources said. Another tanker, Suezmax Indri, with a capacity of 80,000 metric tonnes, was initially sailing towards Singapore before abruptly changing course on March 4. The vessel discharged crude originating from Russia’s Baltic region at Sikka port in Gujarat on March 9. International shipping data suggest that about 60 million barrels of Russian crude are currently on the water, having been loaded before March 6 – the date the waiver was announced – and are within a typical 30-day sailing distance of India. Of this, around 24 million barrels are being transported on non-sanctioned vessels, while the remaining 36 million barrels are on sanctioned tankers. Despite the developments, shipping operations in the Gulf remain strained. Officials from shipping lines said export and import movements continue under constraints, with cargo being diverted through road transport to and from ports closer to origin or destination points in the Gulf. Several ships have also rerouted via the Cape of Good Hope to avoid high-risk zones, significantly increasing operational costs. Port authorities said Jawaharlal Nehru Port Authority has so far managed cargo build-up efficiently by streamlining refrigerated storage and transport systems. Sunil Vaswani, executive director of the Container Shipping Line Association, said the situation has become more challenging for shipping companies. “We were hoping this would not turn into a long-drawn affair, but there is no respite yet. Some ships are stuck on either side of the Strait of Hormuz – some inside and some outside – while services up to the Persian Gulf have been suspended,” he said. Vaswani added that although shipping lines have sufficient vessels and containers, the tonnage and containers stuck in the region are increasing costs and limiting inventory utilisation. “In fact, freight rates over the past five years have dropped by 70-80%. However, surcharges have increased due to higher insurance premiums, vessel waiting costs and other operational expenses, including crew safety. Overall, the cost for global trade has gone up,” he said.