EMEA News
Frontline: Iran Insurance Issues Could take "Two to Three Months" to Be Resolved
Oslo-listed tanker firm Frontline Management AS (Frontline) says securing insurance to carry cargoes of oil from Iran could take another two to three months.
The situation could possibly slow Iranian plans to rapidly increase oil exports.
"When it comes to Frontline, we have not lifted anything yet," Robert Hvide Macleod, CEO of Frontline, said in the firm's recent earnings call.
"In terms of insurance and payments, there are still some outstanding [issues], [but] we expect that to be in place within two to three months. Again, that could change, but two to three months is our estimate."
Until then, Iranian tankers are said to be expected to continue to hold oil at Iranian ports due to a lack of on land storage.
"With the number of ships they have on storage which they will have to remain on storage because they don't have the land facilities, we expect the chartering requirements from Iran to then increase and for them to fix international tonnage in," said Macleod.
Last week Ship & Bunker reported that Gard had issued a loss prevention circular that provided details on protection and indemnity (P&I) insurance coverage, as well as possible coverage shortfalls, in order to assist their members in deciding whether to conduct trade with Iran, as well as other countries which are subject to U.S. sanctions.
