The Globe and Mail reports in its Friday edition that a potential Trump administration plan to ease sanctions on vessels transporting sanctioned oil is expected to have scant effect on increasing tanker availability, say traders and analysts.
A Reuters dispatch to The Globe reports that the Trump administration is mulling various ideas to lower fuel prices and inflation, as tanker rates have surged due to attacks, increased war-risk insurance and complicated operations in the Strait of Hormuz that have reduced ship availability.
Kpler expects the measure to have little impact on the tanker crisis, as it assumes that lifting sanctions will lead to more available capacity. It says, "In practice, the relationship is far more complicated."
Aging vessels, uncertain seaworthiness and unresolved insurance, crewing and management arrangements will limit the ships' commercial appeal.
Kpler says only about 24 ships could rejoin global trade once age is taken into account and tankers owned by Iran's National Tanker Company are excluded.
"Companies are unlikely to charter tankers that were recently under sanctions as significant risks remain in dealing with vessels," says former Treasury sanctions specialist David Tannenbaum.
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