Since the beginning of the war against Ukraine, trade in Russian crude oil has been sanctioned in the West. Since then, India has become one of the largest buyers.
The country now covers a large part of its crude oil requirements with Russian imports. According to the shipping organisation Bimco, the share of Russian imported oil in India is now 40%. At the same time, Aframax and Suezmax tankers that unload their cargo at Indian ports make significantly longer journeys on average.
India imports 1.6 million barrels of crude oil per day
“In the current year, the volume has reached an average of 1.6 million barrels per day,” said Niels Rasmussen, Chief Shipping Analyst at Bimco. This is an increase of 1,000% compared to 2021, before Russia invaded Ukraine.
Increased imports of Russian oil have contributed to crude oil tankers unloading in India travelling a longer distance on average. Since the beginning of the year, the average distance travelled has increased by 10%. Despite a 2% decrease in volumes, total tonne-miles thus increased by 8%. Compared to 2021, the average distance travelled by ships increased by a quarter.
The increase can be attributed to the fact that India previously sourced almost 70% of its crude oil transported by sea from the Persian Gulf states. However, the increase in supplies from Russia has reduced these volumes, with India now importing only 45% from the region. Instead, the region has increased its exports to Europe.
Longer voyages and older ships
The shift in purchasing behaviour has also had a significant impact on the ships that transport crude oil.
Aframax and Suezmax crude oil tankers carry almost all the crude oil from Russia to India. Combined, these two ship types carry 55% of India’s crude imports today, compared to 45% in 2021, while VCCs carry less.
This has also impacted the age of ships unloading in India. The ships still being used for Russian exports tend to be older than average. As a result, ships unloading in India are now, on average, four years older than in 2021, and the proportion of ships older than 20 years has even increased from 2% to 13%.
“As long as sanctions are in place, trade between Russia and India is likely to remain at current levels,” said Rasmussen. “However, according to the International Energy Agency, Indian demand for oil is expected to continue to rise, while Russian production is unlikely to increase.”
