Tankers carrying India-bound Russian crude still idling off Asia:Twelve tankers carrying around 15 mn barrels of Russian Sokol crude set for delivery in India have been idling off the coasts of Malaysia and South Koreafor over a month, Bloomberg reports. Indian refiners did not receive a single Sokol shipment in December due to payment issues, and India’s oil imports from Russia declined that month to their lowest since January 2023. There were hopes for the situation to ease, with three vessels heading back to India earlier this month, and a fourth now signaling its destination as Visakhapatnam Port India. However, the majority of the cargo ships show little sign of moving.

Background: Russian Urals oil fell below the Western USD 60 cap amid increased freight rates caused by new US sanctions on shipowners and a decline in global oil prices in November. Freight rates for Urals oil shipments from Russia's Baltic ports of Primorsk and Ust-Luga to India rose to USD 9.2-9.5 mn per tanker per voyage at the start of this month, up from USD 8 mn a week earlier.

REMEMBER- A price cap of USD 60 per barrel on shipments of Russian oil mandated by G7 countries and Australia came into effect in February 2023. The regulation seeks to curb revenues that Moscow can divert to its war in Ukraine while also ensuring relative stability in global oil supplies.

MT Chemical Challenger, the world's first chemical tanker ship with sails, has departed from Antwerp for Istanbul in a bid to cut emissions by using wind power, France 24 reports. The sails — similar to aircraft wings — reduce fuel consumption by using wind power to propel the vessel and are expected to cut fuel consumption by 10-20%, slashing CO2 emissions by 850 tonnes annually.

Not the first wind-powered ship: A dry cargo ship with metal sails set sail last August from Singapore to Brazil to study how wind energy can cut carbon emissions. The vessel was retrofitted with 37.5-meter wind sails and is expected to cut fuel costs up to 30% on new-build vessels.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Indian port union refuses to handle Israeli equipment: The Water Transport Workers Federation of India, which represents some 3.5k workers at 11 ports, has said its workers will not load or unload Israel-bound military equipment. (Economic Times)
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