Dodgy owners start sending sanctioned tankers to the subcontinent

As the sanctions net tightens and the European Union (EU) prepares a full maritime services ban on ships carrying Russian oil, a further 43 shadow fleet tankers have been sanctioned by the EU, bringing the total to 640 vessels.       The full ban replaces the series of oil price caps that have dated from the end of 2022. The caps have allowed G7 countries to ship Russian oil provided that is sold below fixed price caps. Now, the full service ban narrows employment opportunities still further. 

Meanwhile, uncertainty surrounds India’s position on buying Russian crude. Speaking yesterday at the Munich Security Conference, US Secretary of State Marco Rubio said that India had committed to stop buying Russian oil. But the country has previously said that its own energy security will remain a key determinant.

Unsurprisingly, the identity of the three tankers that have arrived off Alang recently is hard to pin down as their owners continue to operate under a shroud of secrecy. Seatrade has not been able to confirm that the three vessels off Alang are the 1993-built Suezmax Woodchip, that has been flying the flag of Gambia, the 106,550dwt Bodhi, built in 1997 and flying the Cameroon flag, and the 1999-built product tanker, Global Star, which is flying the Tonga flag and is thought to have arrived off Alang last Friday. 

On recycling prices, demo markets remain weak though analysts believe the success of the Bangladesh election could be a significant positive, as a range of construction projects requiring steel and currently on hold, could boost the recycling market. Also, the Bangladesh Ship Breakers and Recyclers Association has now adopted the requirements of the International Ready for Recycling Certificate, already in place in India and Pakistan and requiring ship sellers to disclose fully the inventory of hazardous materials on board.

Describing prices as steady, GMS, the world’s largest cash buyer of end-of-life ships, reckons that Pakistan facilities lead the price table, with container ships at around $450/ldt, tankers $440, and bulkers at $430. Bangladesh comes next, with tankers typically getting $10 less, and bulkers down a further $20. Indian prices are down another $10 across the board

Meanwhile, Aliaga in Turkey has gained some ground recently as a destination that avoids the requirements of the Basel Convention – the trans-boundary movement of hazardous waste. It is proving an interesting option, therefore, for some EU-based owners despite significant lower indicative prices of  $290, $280, and $270, respectively.