Black Sea crude transport costs surge over 10% amid rising attacks

Shipping costs for crude oil from Russia's Black Sea port of Novorossiysk have surged by more than 10% following a rise in attacks on vessels in the region, according to the Kommersant newspaper. The price to transport 140,000 tons of Russian oil to India's west coast climbed 14.6% to $78.6 per ton. Similarly, the cost for a shipment of 135,000 tons from the Caspian Pipeline Consortium (KTC) terminal in Novorossiysk to the Mediterranean increased by 10.4% to $35.2 per ton.

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The cost of transporting 140,000 tons of Russian oil in a tanker from Novorossiysk to the west coast of India increased by 14.6%, to 78.6 dollars per ton.

Sources cited by Kommersant suggest the primary concern is not just the increased freight costs, but the potential refusal of shippers to dock at Russian Black Sea ports due to the inherent dangers. This fear was amplified when the KTC reportedly halted oil loading operations at its terminal, citing concerns over new attacks, shortly after a drone struck a tanker. Companies involved in transporting Kazakh oil are now demanding comprehensive protection for their routes, encompassing both pipeline and ship logistics.

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The price to pay for the freight of 135,000 tons of crude oil from the Caspian Pipeline Consortium (KTK) terminal, in the same Russian city, to the Mediterranean Sea, increased by 10.4%, to 35.2 dollars per ton.

The situation unfolds as Russian forces have simultaneously targeted Ukrainian ports like Odesa. Since July 11, at least 28 cargo ships have been hit. Despite the heightened risks, oil shipments from Novorossiysk in the second week of July nearly doubled compared to the previous week, reaching 80,000 tons daily. This volume, however, represents an 18.4% decrease from June but a significant 40% increase from May.

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the problem is no longer so much the increase in freight costs, but the possible refusal of shippers to dock their ships in the Russian ports of the Black Sea due to the danger of attacks.