Price Cap Coalition

On 12 October 2023 the Price Cap Coalition published a “Best Practice” advisory on price cap compliance:

The Advisory includes 7 specific recommendations for those involved with price cap activities, including insurers, and shipowners/operators. Members should note that where a vessel is being chartered to perform a price cap voyage, they are recommended to give very careful consideration to the vessel’s ownership/management/trading history/class/flag/P&I insurance, and to look for signs of AIS manipulation. Any red flags or concerns should be addressed before agreeing a charter, and if any red flags cannot be satisfactorily explained alternative vessels should be used. Members may also be expected to query and reject employment orders involving STS operations in places that are either non-standard or otherwise not safe/sheltered, on the basis that this may be a sign of an effort to disguise the origin or destination of cargoes. The Advisory also warns of tactics that may be used to conceal that Russian oil was purchased above the price cap, such as where shipping and ancillary costs are either inflated or opaque.

Members should refer any queries to their usual contacts in the Club.