Meanwhile India is bound by arcane rules that oblige state-run refiners to use Indian insurers and shippers, who look unlikely to take on the risk, and the ensuing inability to use Iranian tankers and insurers to transport the vital commodity.
Reports cited the transport ministry as saying the Japanese government plans to take over coverage for ship owners and petroleum refiners because they will lose access to Europe’s reinsurance market after the EU embargo takes effect July 1. The bill will be sent to the Diet for approval.
In India, up to 173,000 bpd of imports in July are at risk unless the Indian government allows refiners to use insurance and freight provided by Iran. The $50m of cover provided by Indian state insurers is not considered sufficient, and domestic shippers have refused to take the shipments because of a lack of cover.
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