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Oil tanker clears Turkiye shipping logjam with Russian insurance letter

MEMO | December 6, 2022

A letter provided by Russian insurer, Ingosstrakh, enabled the first oil tanker to sail through Turkish waters in recent days after tougher regulations were imposed by Turkish authorities, a document showed, Reuters reports.

This has led already at least 20 oil tankers backed up in the Turkish Straits as they do not have the right paperwork.

Turkish authorities introduced new requirements, which came into effect on 1 December, in which every ship must have insurance cover in place for all circumstances when sailing through Turkish waters or when calling at ports.

Ingosstrakh provided the requirements for the Liberia flagged “Vladimir Tikhonov” tanker, which included insurance for pollution risks throughout the period in Turkish waters, according to a letter issued to the authorities on 29 November by the insurer and seen by Reuters.

The world’s leading Western ship insurers say they are unable to provide cover for all circumstances, arguing they cannot be liable for payouts if, for instance, there are sanctions breaches with a ship’s cargo.

“Vladimir Tikhonov” completed sailing through the Bosphorus on 3 December, ship tracking data showed.

Supply Disruption From Russia Price Cap Is Here: Tanker Jam Forms Off Turkey

By Tyler Durden | Zero Hedge | December 6, 2022

The EU and G7 price cap on Russian oil went into effect on Monday, but it’s already causing disruptions in global supply chains. The first manifestation comes from Turkey, where the Financial Times reports that a tanker traffic jam is stacking up in Turkish waters and blocking some 18 million barrels of oil from passage, as the country’s authorities demand proof that the vessels have insurance coverage:

“Around 19 crude oil tankers were waiting to cross Turkish waters on Monday, according to ship brokers, oil traders and satellite tracking services. The vessels had dropped anchor near the Bosphorus and Dardanelles, the two straits linking Russia’s Black Sea ports to international markets.”

In a striking demonstration of the price cap’s potential to disrupt markets, most of the oil in the delayed ships isn’t even subject to the sanction regime: It’s from Kazakhstan and has merely transited Russian ports after arriving there via pipeline.

One oil industry insider said Russian shippers have transited with relative ease — it’s shippers covered by western insurers that are anchored and now destined to deliver their cargo late. … Full article

December 6, 2022 - Posted by | Economics, Environmentalism | , ,

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