Tanker freight rates for shipping Russian Urals crude to India from western ports have risen sharply in late September and early October, following a surge in Russian crude exports, industry sources said.
Exports from Russia’s western ports—Primorsk, Ust-Luga, and Novorossiisk—jumped by 500,000 barrels per day in September compared with August, reaching a record 2.5 million bpd. The increase was partly driven by unplanned refinery maintenance.
Freight costs for transporting Urals from the Baltic ports of Primorsk and Ust-Luga to India for late October loading have climbed to around $7 million for Aframax tankers, up from $6–6.5 million in late August to mid-September. Rates from the Black Sea port of Novorossiisk on Suezmax tankers, which carry roughly 140,000 metric tons, rose to about $6.2–6.5 million, compared with $6 million a month earlier.
Despite punitive U.S. tariffs on goods imported from India after it continued buying Russian oil, Indian refiners are maintaining purchases. Industry sources noted that both “shadow fleet” tankers and Greek shipowners are actively involved in transporting Urals crude, with Greek operators remaining in the market.
In early October, France detained the tanker Boracay, loaded with 100,000 tons of Urals crude from Primorsk destined for India’s Vadinar port. French authorities suspect the vessel was part of Russia’s “shadow fleet,” a measure aimed at blocking revenue that could fund Moscow’s war effort in Ukraine. President Emmanuel Macron confirmed the detention as part of a new European strategy, while Russian President Vladimir Putin condemned the operation as an act of piracy.
Freight rates remain significantly higher than in January 2025, when shipments from Baltic ports to India cost between $4.7 million and $4.9 million per voyage, reflecting tight tanker availability and strong demand for Russian crude.
