Global Suppliers fuel they are turning to longer, more expensive routes that generate more carbon emissions to move diesel and their other products. And this is happening because the restrictions imposed by the West on Russian cargo have caused a restructuring of the models of international cargo transportation. As a result of her ban European Union for the transportation of Russian fuel, starting from February 5, by tankers carrying clean products oilGasoline, diesel, jet fuel and naphtha, for example, take between 16 and 18 days to ship to Brazil or to ship U.S. cargo to Europe, two sources said. transportation. That’s more than the 4-6 days it took the ship to travel from Russia to Europe, two sources said – the sources are a broker at a major shipping company and freighter, which is involved in the Russian trade in naphtha, which is used to make plastics and petrochemicals. Since the introduction of the ban, the tanker cleanliness index published by the Baltic Exchange, which measures the average shipping rates for fuel such as petrol and diesel on some of the world’s most common routes has more than doubled.

The change in the sea route map highlights the negative impact of Western attempts to impose sanctions on Russia over its invasion of Ukraine last year. At the same time, it increases supply insecurity and drives up prices, even though officials central banks policymakers are concerned about inflation and the risk of a global recession. “Not only have voyages become much longer, but the behavior of the vessels themselves has also changed, preventing them from operating in other CPP (clean petroleum) markets,” commodities analyst Dylan Simpson said in late March in an oil analysis firm report. Vortexa. Russian fuel supplies are being sent to distant buyers in Brazil, Turkey, Nigeria and Morocco as Moscow makes up for the lost European market. As a result, the Old Continent is importing more fuel such as diesel from Asia and the Middle East, according to shipping industry data from Refinitiv and Kpler.

Now Asian cargoes are in turn being displaced by Russian fuel in Africa and the Eastern Mediterranean and redirected to Singapore’s blending center for temporary storage, two sources at refineries in northeast Asia said. European importers whose naphtha cargoes were moved from Russian ports to Antwerp four days before the Russian invasion of Ukraine are now forced to wait 18 days for alternative supplies from the US, a well-informed source said. In addition, due to Western sanctions, the US is also becoming the leading supplier of heavy naphtha to Europe. Both the G7, EE and Australia have capped Russian naphtha at $45/bbl and diesel and gasoline at $100/bbl in deals using Western ships and insurance. Finally, Brazil, a traditional importer of US naphtha, is increasing its purchases from Russia at more attractive prices.