Record Freight Costs Strain Russia's Black Sea Crude Exports Amid Shipping Threats
Source Summary
Freight costs for Russian crude oil exports from the Black Sea have reached record levels due to heightened shipping threats from Ukrainian attacks and a tanker shortage. In the week to September 6, Aframax tanker rates from Novorossiysk rose for the seventh consecutive week, increasing 2.7% to India and 3.1% to North China, with the cost to ship crude to India now at $23.20 per barrel.
Why it matters
Rising freight costs directly increase the expense of Russia's crude exports, affecting the profitability of shipments to key markets and the competitiveness of Russian oil in global trade.
