Shandong Port’s Sino head stated in the notice that “It is not possible for the United Shandong ports to accept any interaction with American companies, along with these scattered vessels any Chinese company is sancitoned from using them”.

Additionally, Shandong Port failed to comply with our requests for a comment.

The trader is of the view that America cannot afford this delay as they tried banning companies dealing with Iran oil to import large quantities of oil, tensions are already melting between America and Iran and this will further hazard the economic relations binding them. Starting  January 20, Donald Trump is set to become America’s president and all resources are awaiting a twofold increase in the sanctions Trump intends on placing on Iran.

Due to America’s presses with Iran, Indian refineries are bound to retail There sanctioned oil at a heightened price, this increase would be compounded with costs incurred by trading with Shandong.

If one goes through a maritime services report compiled the European Union sanctions aside from any political sanctions have been shown to impact oil import volumes substantially fulfilling four criteria.

In the second notice, dated Tuesday, reviewed alongside Reuters by Shandong Port, they claim that the shipping ban will hardly affect independent refiners as most of the oil which has been sanctioned is being transported in non sanctioned tankers. The notice states that A sanctioned tanker Eliza II has been offloaded at Yantai Port during early January which explains this ban. According to estimates derived from Vortexa,Vortax, in December, eight very large crude oil carriers which each carried two million barrels lifted mostly Iranian oil from shandong. The vessels included Phonix, Vigor, Quinn and Divine, which are all sanctioned by the US Treasury. Shandong refiners which have already been facing bad margins and weak demand are now dealing with high operational costs due to the replacement of non sanctioned ships. According to fresh US sanctions shipping capacity was limited and logistics cost were heightened which lead to Iranian crude sold to China reaching the highest it has been in years, just last month. Due to the plan which bid
en Administration has of placing further sanctions on Russia for the ongoing war with Ukraine the prices of Russian oil which had increased to a two year high are estimated to remain on the same line.