Analysis-World's ghost fleet in focus over US Russian price cap crackdown
© Reuters. FILE PHOTO: Liberia-flagged Aframax tanker Suvorovsky Prospect discharges fuel oil from Russia at the Matanzas terminal, in Matanzas, Cuba, July 16, 2022. REUTERS/Alexandre Meneghini/File PhotoLONDON - U.S. penalties on shippers transporting Russian oil in breach of the G7's price cap could push more Russian cargoes onto vessels referred to as the ghost fleet and away from mainstream tankers, shipping sources and analysts told Reuters.
One tier relies on vessels known as the ghost fleet that are past their traditional lifespans, meaning they are at greater risk of leaks and spills. They cited the increased risks and costs of proving their cargoes are price-cap compliant and said the consequence could be that more ghost vessels are used for Russian shipments.
As some of the largest movers of oil globally, it would be a"big disincentive" to independent G-7 based owners to continue with price cap voyages if energy majors were to avoid them, Mike Salthouse of NorthStandard P&I club said.“Everyone is going to be triple checking everything they are doing is above board. That comes at a cost, and that drives freight rates higher,” energy consultants FGE told Reuters.
Ghost fleet vessels, which tend to be older, are covered by non-Western, rather than Western insurance, which the U.S. Treasury has warned about, given potential environmental risks. Richard Bronze from Energy Aspects said the market has taken note that the imposition of the first sanctions focused on niche Russian crude grade Novy Port and the Pacific grade ESPO Blend, which are usually more expensive than Russia's main export grade Urals.
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