India ships to lose insurance due to Iran sanctions, may look to China
Asian oil importers to rely on domestic firms for OPEC shipments Indian shipping firms will find it difficult to obtain replacement insurance coverage to continue importing Iranian crude oil after new European Union sanctions come into effect, industry sources said.State-run Shipping Corporation of India, the largest tanker owner in the country, will lose EU insurance coverage for its oil tankers operating in Iran from July 1, when European insurers will be prohibited from indemnifying ships carrying Iranian oil.Indian maritime firms are likely to be the most affected in Asia by the sanctions, as the other two big buyers of Iranian crude, China and Japan, do not rely on European insurers but are covered by domestic providers.India, China and Japan are Iran's three biggest crude oil buyers."We are covered by P&I clubs in the EU," Sunil Thapar, director at Shipping Corp of India told Reuters, referring to customer-owned maritime protection and indemnity insurance groups."These clubs will not be able to give us coverage for vessels to Iran from July. It will be difficult for Indian shipping lines to transport Iranian crude unless alternative arrangements are made," he said. SCI owns 39 oil tankers.FEWER OPTIONSA.P. Moller-Maersk, Singapore-based Samco Shipholding, and many other ...
Read more