Over 25 supertankers that are Asian- or European-owned are shipping oil from Iran, showed data that an international news agency released. This has allowed Tehran to ratchet up its oil exports far faster than industry analysts expected after economic sanctions had been lifted against Tehran during January.
Iran was struggling up through April in its attempt to find shipping partners that would ship its crude. However, following an agreement for temporary insurance over one third of the crude shipments made by Iran are being transported by foreign ships.
A chartering manager said that charterers are purchasing cargo in Iran and it seems the remainder of the world has been fine with that. One tanker management company from Greece has fixed three supertankers to carry crude from Iran.
Some ship owners around the globe have been reluctant to carry the oil from Iran. However, because of some restrictions the U.S. has on Tehran that are still in effect and prohibits trade in dollars or U.S. firms’ involvement, including reinsurers and banks.
Iran wants to make up for its lost trade following the majority of sanctions that were imposed during 2011 and 2012 being lifted thanks to an agreement with world powers over its nuclear program.
Data on port loading and live shipping shows a minimum of 26 tankers from outside Iran with a capacity of carrying over 25 million barrels of heavy or light crude have loaded fuel or crude oil over the past two weeks or are getting ready to do so at the Bandar Mahshahr and Kharg Island terminals in Iran.
The restart of shipping internationally of oil from Iran has become possible due to an increase in limited, interim insurance coverage that provides maritime companies with indemnity and protection insurance.
A group that represents the top 13 worldwide ship insurers, increased its amount covered by the fall back shipping insurance to 100 million euros from 70 million this past April.
This fall back coverage was designed to offset a shortfall in payments from reinsurers in the U.S. who still cannot deal with any company in Iran.
While the lifting of some of the sanctions means the foreign tankers are now allowed to transport oil from Iran, risks still remain due to a large accident possibly not being completely covered.
Because of that, insurers said many oil shippers in the first-tier such as Teekay, Euronav and Frontline are still shying away from hauling oil from Iran