Indian importer and supplier Rashtriya Chemicals & Fertilizers Ltd (RCF) has delayed the latest loading date under its 18 February urea tender to 30 April from 31 March, citing a supply crunch caused by the Middle East war.
Suppliers are still to nominate five vessels to carry a combined 217 000 t of urea under the tender, which saw RCF award around 1.3 million t. Seven nominated vessels carrying approximately 300 000 t are stuck behind the strait of Hormuz – three from Qatar, three from Saudi Arabia, and one from Bahrain.
The outstanding nominations and stranded vessels mean about 520 000 t has yet to be shipped to RCF. Oman is the only country in the Middle East shipping urea freely, with three vessels carrying just over 150 000 t sailing under RCF commitments.
The war has upended urea supply, cutting off Qatar, Saudi Arabia, the UAE and Bahrain, which typically account for 1 million tpm of shipments – around 20% of global trade. At least 21 vessels loaded with 919 000 t of urea are stranded beyond the Strait of Hormuz by the end of March, according to Kpler tracking data. The true number could be higher if operators have deactivated automatic identification systems.
Original article by Harry Minihan for Argus Media.