New Delhi: A shipment of about 600,000 barrels of Iranian crude that was expected to arrive at Gujarat’s Vadinar port on 4 April aboard the vessel Ping Shun has dropped India as its declared destination, and is now signalling China, according to a market expert.
“An Iranian crude vessel “PING SHUN” that had been en route to Vadinar, India, over the past three days has dropped India as its declared destination near arrival, and is now signalling China,” Sumit Ritolia, Manager for modelling refinery and oil markets at Kpler, a global trade data intelligence firm told ThePrint Friday.
Ritolia, citing market sources, said the change in destination is linked to a shift in payment terms, with sellers now demanding upfront payments instead of offering a 30–60 day credit window.
“The shift appears to be payment-related, with sellers tightening terms, moving away from the earlier 30–60 day credit window toward upfront or near-term settlement,” Ritolia said.
He added, “While such mid-voyage destination changes are not unprecedented with Iranian crudes, they highlight the increasing sensitivity of trade flows to financial terms and counterparty risk.”
It remains unclear which Indian refinery procured the cargo, as multiple refiners, including Indian Oil Corporation, Nayara Energy and Bharat Petroleum, source crude through Vadinar.
However, Ritolia indicated that the cargo could still be diverted back to India if payment issues are resolved.
“If the payment issues are resolved, the cargo could still make its way to an Indian refinery,” Ritolia said.
He added, “However, the episode underscores how commercial terms are becoming as critical as logistics in determining Iranian crude flows to other countries apart from China.”
If the vessel ultimately docks in India, it would mark the first arrival of Iranian crude in the country since 2019.
(Edited by Ajeet Tiwari)