Freight rates for shipping Russian Urals crude from western ports to India have risen by roughly 50% compared with mid-July, according to Reuters, citing traders.
Transporting a cargo of about 100,000 tonnes on an Aframax tanker from Primorsk to India now costs approximately $13 million, up from $8–9 million in mid-July. Shipping 140,000 tonnes from Novorossiysk on a Suezmax tanker has risen from about $10 million to $15 million.
Reuters estimates that the higher shipping costs could cut Russia's export revenues by at least $5 per barrel.
The increased frequency of drone attacks on tankers in the Black Sea in July led to a suspension of oil loading at Novorossiysk and at the Caspian Pipeline Consortium (CPC) terminal. The heightened risks have prompted many shipowners to avoid the Black Sea region, making it harder to find vessels and causing delivery delays. One Reuters source said Greek shipowners are leaving Russian ports because it has become too dangerous.
In August, Russia plans to increase oil exports from the ports of Primorsk, Ust-Luga, and Novorossiysk by 4% compared with July, to about 2.7 million barrels per day. However, a shortage of available tonnage could limit these plans, agency interlocutors noted. In July, exports from western ports fell to 2.6 million barrels per day due to loading disruptions in Novorossiysk.
Demand for Russian oil in Asia remains high amid supply disruptions through the Strait of Hormuz.