Explainer: Disruptions in the global shipping industry

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Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan ...

REUTERS: Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan crude oil tankers.The cost of chartering a supertanker to send crude oil from one country to another is rising sharply. A South Korean importer paid more than US$12 million in shipping costs for one crude shipment from the U.S. Gulf Coast.

for their alleged involvement in bringing crude oil from Iran. U.S. Gulf Coast exporters, in turn, have held back from chartering -linked vessels. operates more than 50 supertankers, the largest vessels for carrying crude oil or fuel products.Last week, Exxon Mobil Corp banned the use of vessels linked to oil flows from Venezuela in the last year, affecting some 250 ships. Exxon is the largest U.S. oil company and a major shipper, and its move caused rates to rise further, market sources have said.

and Exxon's moves.New maritime rules capping the amount of sulfur used in fuels for shipping have added to rising rates, because they raise the cost for shipowners who had in the past relied on"bunker fuel" - and as of Jan. 1 will have to switch to cleaner-burning marine fuel or diesel fuel.

 

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