US considers easing sanctions on shadow fleet vessels to cut freight rates, official says
USO•The Trump administration is considering allowing legal oil on previously sanctioned shadow fleet vessels to increase shipments and reduce record-high freight rates. Companies would need Treasury approval, and industry sources said EU and UK rules would still bind ship insurers.
1. Proposed vessel access
The administration is discussing allowing crude and petroleum products not sanctioned by Washington to move on previously sanctioned vessels. A US official said companies would have to apply to the Treasury Department to use the vessels, and the Energy Department said any relief would not help Russia move oil or oil products.
2. Freight rate impact
The goal is to move more refined products and crude out of the Gulf as tanker freight rates reach record highs. Energy Aspects said easing sanctions would not greatly affect rates, though it could allow more oil movement in the Middle East and make a small number of tankers available for Strait of Hormuz shuttle runs. Maritime industry sources said EU and UK regulations would continue to bind ship insurers.
