Sanctions could lift already booming product tankers to new heights

What if country A needs diesel, and country B, located right next door, has that diesel, which it refines from crude oil produced within its own borders — but country A is forbidden from buying it? What if country B then ships its crude all the way to the other side of the globe to country C, which refines it into diesel and ships that diesel all the way back around the globe to country A?

That sounds crazy from a transport economics perspective. It also sounds phenomenal for tanker owners, because longer voyage distances soak up more vessel supply and boost rates.


View entirety: Freightwaves