October, 2024 - Price Cap Coalition issues updated maritime advisory

The Price Cap Coalition, which includes the G7 countries together with the EU, Australia and New Zealand, issued an Updated Price Cap Advisory for the Maritime Oil Industry and Related Sectors on 21st October, 2024.

It provides updated and new recommendations to the industry concerning specific best practices in the maritime trade of crude oil and refined petroleum products. The Advisory highlights the “increased safety, environmental, economic, reputational, financial, logistical, and legal risks” and presses stakeholders to reduce their exposure by adopting its recommendations. These include requiring counterparties/ships to have appropriately capitalised P&I insurance, IACS classification, adopting the proper use of AIS and monitoring high-risk ship-to-ship transfers. Stakeholders are reminded of the ability to request associated shipping and ancillary costs information (such as freight, customs and insurance details) and of the need for appropriate due diligence particularly when Russian oil prices exceed the price cap.

Stakeholders are urged to report ships that trigger concerns and seek to ensure that ships involved in trades meet international maritime safety and environmental obligations. The Advisory encourages the monitoring of tanker sales (especially for aging tankers or those previously designated for recycling) and directs that stakeholders should avoid interactions with sanctioned parties whilst raising awareness and transparency.

A copy of the Advisory can be accessed here.

If Members have any questions in relation to the above issues they are invited to contact the Club for further information.