Lloyd's List is part of Maritime Intelligence

This site is operated by a business or businesses owned by Maritime Insights & Intelligence Limited, registered in England and Wales with company number 13831625 and address c/o Hackwood Secretaries Limited, One Silk Street, London EC2Y 8HQ, United Kingdom. Lloyd’s List Intelligence is a trading name of Maritime Insights & Intelligence Limited. Lloyd’s is the registered trademark of the Society Incorporated by the Lloyd’s Act 1871 by the name of Lloyd’s.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call UK support at +44 (0)20 3377 3996 / APAC support at +65 6508 2430

Printed By

UsernamePublicRestriction

First sanctioned Russia-trading tanker enters Shandong port during exemption window

Aframax Mermar docked at Longkou on January 15, after remaining at anchorage for four days

Panama-flagged Mermar is the first Ofac-designated tanker to have been allowed to dock at a port in Shandong since the sweeping sanctions on Russian oil trade imposed by the US last Friday. Washington has authorised transactions necessary for these vessels to complete discharge by February 27

THE first US-sanctioned tanker has been tracked entering a port in Shandong, following the Chinese province’s ban on such vessels as well as Washington’s latest designations in its biggest blow yet to Russian oil trades last week.

The Panama-flagged aframax Mermar (IMO: 9231212) docked at Longkou on the northern Shandong Peninsula on January 15, having waited at anchorage for four days, according to vessel tracking data.

The ship was among the nearly 160 tankers and other entities sanctioned by the US Treasury Department’s Office of Foreign Assets Control on January 10 for involvement in trading Russian oil.

Days earlier, state-owned Shandong Port Group issued a ban, requiring its ports to stop providing services to sanctioned vessels, especially those blacklisted by Ofac.

Lloyd’s List understands Mermar, carrying about 755,000 barrels of crude from the Russian Far East port of Kozmino, was allowed to call at the port as it was within the Ofac grace period. The port group has been approached for comments.

Ofac issued a general license authorising transactions necessary for blocked vessels to offload cargo loaded before January 10, with activities permitted until 0001 hrs US Eastern Standard Time, February 27, 2025.

In addition to Mermar, eight other tankers sanctioned alongside it were anchored off Shandong’s coasts, with at least three aframax tankers appearing laden, based on their reported drafts.

They were Olia (IMO: 9268112) and Huihai Pacific (IMO: 9346732), also from Kozmino, currently off Yantai and Dongjiakou, respectively.

Another Far East Russia crude lifter from De Kastri, Viktor Titov (IMO: 9301407), was at outer anchorage off Qingdao.

Industry sources said sanctioned vessels would now be allowed to call at Shandong ports, provided they meet the US government’s general license requirements and had declared their arrivals to the port before the Ofac sanctions.

The four ships together carry close to 3m barrels of crude oil from Russia.

The industry is watching closely if these tankers can successfully discharge cargo, and more critically, where they head after offloading.

Expectations are building that these blacklisted tankers will be squeezed out of the mainstream market, boosting rates for compliant tonnage.

Meanwhile, concerns are growing that more ship-to-ship transfers will be used to sustain the sanctioned trade, while alternatives are being sought to replace the designated vessels.

According to Vortexa, the latest round of US sanctions adds 77 aframaxes and 25 suezmaxes to the Ofac list, designating much of Russia’s primary crude fleet.

Its data shows that over 85% of Russian crude trips to Shandong in 2024 used now-sanctioned tankers, and last year, Shandong took 50% of Far East oil, the Federation’s main crude source for China.

“If Shandong’s ban takes immediate effect, these vessels may no longer be able to serve their Shandong customers, creating logistical challenges even for January-delivery cargoes,” Vortexa China oil market analyst Emma Li said in a report.

 

 

Related Content

Topics

  • Related Vessels
  • Related Companies
  • Related Places
  • UsernamePublicRestriction

    Register

    LL1152244

    Ask The Analyst

    Please Note: You can also Click below Link for Ask the Analyst
    Ask The Analyst

    Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

    All fields are required.

    Please make sure all fields are completed.

    Please make sure you have filled out all fields

    Please make sure you have filled out all fields

    Please enter a valid e-mail address

    Please enter a valid Phone Number

    Ask your question to our analysts

    Cancel