Iran Using Smaller Ships for China Oil Trade Amid US Sanctions

Smaller and more agile tankers are playing an increasingly important role in the transport of Iranian oil to China, as the illicit trade faces mounting pressure from US sanctions.

- BLOOMBERG

Aframax and Suezmax vessels have become more active on the sensitive route, ship-tracking data shows.

Eight such tankers received Iranian crude from supertankers via ship-to-ship transfers in February, with the majority of them bound for China, according to Kpler data. That compares with two tankers each in December and January.

The use of smaller vessels in the Iran-China trade, typically dominated by very-large crude carriers (VLCCs), also known as supertankers, has piqued the interest of shipping firms.

The shift is likely due to their ability to discharge oil at shallower Chinese berths — such as Dongying — that are increasingly being used to receive Iranian and Russian shipments, said shipbrokers and analysts.