Tag Archives: sanctions

This useful article indicates the different types of use for tankers that trade grey products, which are either sanctioned oil, or Russian products which are not sanctioned but are subject to a price cap.

Six tiers are suggested by BRS, a ship broker, ranging from hardest to trade to easiest to trade.

Mainstream tankers who refuse Russian business are easiest to trade. The next easiest are mainstream tankers that undertake Russian business under the price cap. These two tiers are insured by Western P&I clubs.

Getting grayer, we come to vintage older tankers owned by small companies, usually with no record of ship management. Those that take Russian business, probably under the price cap, and other mainstream business, are next easiest to trade. Next lowest are those that undertake only Russian business, assumed to be under the price cap. These two can be insured by Western P&I clubs, assuming they lift under the price cap.

Below them are those that only undertake sanctioned business such as with Iran, Venezuela, and North Korea. These probably are insured by state-owned insurance clubs from those states.

In the darkest grey tier are tankers that are under sanction. These include PDVSA, Iran, Sun Ship Management, and other sanctioned entities, also probably insured by state-owned insurance clubs.

BRS International is an international ship broker providing chartering and post-fixing services across the world’s tanker markets (from their website). They count over 700 tankers over 3000 DWT in the world grey fleet.

The article contains other useful information for understanding the grey tanker market.

Sam Chambers April 12, 2023

Shades of grey overshadows dark fleet – Splash247