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US crackdown on oil shippers for violating Russia sanctions could divert cargoes to more shadow tankers: Industry insiders are warning that US penalties on shippers in breach of the G7’s price caps on Russian oil will likely boost the size of the world’s ghost fleet, as traders begin to use aging tankers that are not monitored or insured by the US to circumvent sanctions, Reuters reports.The G7 cap bans Western corporations from supplying maritime services for Russian seaborne oil exports sold above USD 60 a barrel. Nearly 500 ships currently make up the world’s ghost fleet, as The Guardian reported previously. A few weeks ago, the US sanctioned two tankers — UAE-based Lumber Marine for shipping and Turkey-based Ice Pearl Navigation Corp — for using US-based shipping services while carrying Russian crude purchased at a greater price than USD 60 per barrel.
The Russian price cap is also hiking freight rates: “Everyone is going to be triple checking everything they are doing is above board. That comes at a cost, and that drives freight rates higher,” energy consultants FGE told Reuters, which notes that the rise in freight costs has been masked by the increase on the back of escalating tensions in the Middle East. Despite that, shipping sources say sanctions have already lifted freight rates.
Biden says IMEC regional corridor partially behind Hamas attack on Israel: US President Joe Biden has suggested that Hamas’ attack on Israel on 7 October may be linked to the announcement of the India-Middle East-Europe Economic Corridor (IMEC), since it is a major step in integrating Israel with the wider region, PSUWatch reports. The IMEC initiative aims to connect India, the GCC, and Europe via a network of railroads. Biden told reporters at a joint news conference with Australian Prime Minister Anthony Albanese that his speculation is based on “instinct,” and that he has no proof of this, PSU Watch reports.
The corridor is good news for Israel: Israeli Prime Minister Benjamin Netanyahu happily welcomed the IMEC announcement back in September, saying that “Israel will be a central junction in this economic corridor, our railways and our ports will open a new gateway from India through the Middle East to Europe, and back,” and that it would bolster Israel's efforts to seek recognition from Arab states.
