Sanctions against Russia have created a shadow fleet - more than 1,000 old tankers transporting oil in defiance of restrictions. If the war in Ukraine ends and sanctions are lifted, the fate of these vessels will be in question
The shadow fleet has flourished thanks to high risk premiums. These old ships, which should have been scrapped long ago, earn millions servicing the sanctioned transportation of Russian oil
What will happen if the sanctions are lifted?
🟦Major oil companies - will not accept these ships, as they have strict safety requirements
🟦Small traders and small refineries - will be able to use part of the fleet, but not all
🟦Tanker market - will experience pressure, as many ships will be left without work
✈️However, some time will pass between the end of sanctions and the large-scale disposal of ships in the shadow fleet, which will put pressure on tanker rates. Kolding estimated a period of 12 to 18 months where the market will feel some pain before shipowners are forced to scrap older, unprofitable vessels.
