Two tanker owners -- busted

Two tanker owners, one from Turkey and one from UAE, have been busted for carrying Russian oil above the G7 price caps

5 Likes

Just curious, but how does a tanker owner know the price of the goods they carry?

If the shipper declares a value, how does the owner find out what the destination customer actually pays? In normal business, why would they even care? Presumably, they would insure at the declared value to protect themselves.

Or is the mechanics of the tanker business model that much different than trucking?

2 Likes

Good question. I had pondered along the same lines prior to posting.

I believe there is something in the insurance clauses that factor value of cargo

2 Likes

I Googled. There are many references available. All suggest the invoiced value of cargo is a factor.
I use this one because it points out the risks of under-insuring the cargo value
Cargo Insurance Costs Calculator - Roanoke.

Edit: It should be noted the insurance cost is per trip. So that allows an auditor/investigator to narrow their focus to a “per trip” basis (assuming all the paperwork is provided)

1 Like