China P&I club, the nation’s key ship insurer, will stop indemnity coverage for tankers carrying Iranian oil starting in July in order to abide by tightened Western sanctions against Iran following similar action in Japan, The New York Times reported.
It is the first Chinese maritime insurer to make the decision, and the first sign that Chinese refiners may struggle to keep importing oil from Iran due to tougher availability of shipping and insurance.
India, Japan and South Korea, Iran’s other top customers, are in a similar bind.
“Many ship owners want to join our club and want our club to cover this risk, but considering all these regulations from the United States and the EU, I know the China P&I club will not do that,” said an official from a Hong Kong-based insurer with 1,000 vessels.
“We have asked our members not to go there. If they go there…
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