Record Freight Costs Squeeze Russia's Black Sea Crude Exports
Heightened shipping threats from Ukrainian attacks and a shortage of tankers have pushed the freight costs for Russia’s crude oil exports from the Black Sea to record highs. In the week to September 6, the key tanker rate for shipping crude oil on an Aframax from the Black Sea port of Novorossiysk t
Source: OilPrice.com
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DW NOTE
Russia shipped 85% of its seaborne crude through the Black Sea before February 2022. Now freight costs from Novorossiysk have hit record highs — not because of sanctions enforcement, but because every available tanker with a tolerance for reputational risk is already spoken for. When your customer base shrinks to China and India and your payment rails run through yuan swap lines, you don't get to negotiate freight rates. You take what's offered or the oil stays in the ground.