Perhaps the biggest initial impact of the import bans and self-sanctioning of Russian crude is to be seen in the very long and unusual journeys that some cargoes are beginning to make.
Cargoes are being transferred from the ships that call at Russian terminals onto much bigger vessels in order to benefit from economies of scale on the long voyages to China and India. A supertanker, known in industry speak as a Very Large Crude Carrier, or VLCC, can be used to accumulate the cargoes from three smaller vessels, known as Aframaxes, that often load west Russian barrels.
Vitol Group, the world’s biggest independent oil trader, booked a supertanker, Searacer, to load from Denmark’s Skaw, a popular location for ship-to-ship transfers of Russian cargoes.
Instead, the ship has been off Morocco since mid-March, where it has taken three consignments of Urals crude, one loaded in the Black Sea and the other two in the Baltic, from smaller vessels. It is now heading back into the Atlantic, signaling its next port of call as Saldanha Bay in South Africa, though its fixture history suggests an eventual destination in China.
The next VLCC to take on Russian crude off Ceuta is the Elandra Denali, which arrived there on April 4. It began its first cargo transfer on April 9 from the Aframax Tigani, which loaded its cargo at Primorsk in the Baltic in late Mrch.
Likewise Unipec, the trading arm of Chinese oil giant Sinopec, part filled the VLCC Nissos Rhenia with cargoes from two Aframax tankers off Rotterdam. The vessel is now headed for Ningbo in China, where it is expected to arrive in mid-May.