News / More non vessel-owners become vessel-owners to cash in on Russia trade

Baryon Photo: Vesselfinder

More NVOCCs are becoming shipowners and or liner operators, lured by healthy cargo volumes and freight rates on routes to and from Russia.

The latest, Vistar Shipping, a UAE-incorporated NVOCC, has launched an India-Russia-Turkey liner service after an affiliate acquired a container ship.

Vistar, part of a group headed by Indian NVOCC Econship Marine, established in 2008, early in the year bought the 1997-built 1,700 teu Baryon, from Qingdao Pengteng International.

Vessel-tracking data shows the ship has been carrying cargo between India’s Jawaharlal Nehru Port, the Russian Black Sea port of Novorssiysk and Turkey’s Ambarli.

Last week, The Loadstar reported that the booming Russian trade had attracted many newcomers. Except for MSC, all mainline operators have withdrawn from the trade in the face of international sanctions following Russia’s invasion of Ukraine.

Xeneta chief analyst Peter Sand told The Loadstar: “This is a classroom example of how trading and shipping works; it will always find a way. Sanctions against Russia are almost always exclusively western, and most of Asia has benefited from this by increasing trade with Russia.”

The trend of NVOCCs buying ships in general, is not new. When transpacific and Asia-Europe rates reached historical highs in 2020 and 2021, several started their own liner services, including China United Lines and Transfar Shipping.

And this year, Yangpu Newnew Shipping, an affiliate of Torgmoll Supply Chain, a Chinese NVOCC specialising in moving cargo to Russia, acquired two vessels. One has been moving cargo from Tianjin, Busan and Vostochny, while the other has been carrying containers between Busan and another Russian Far East port, Vanino.

And Linerlytica’s latest report, released yesterday, indicates that Yangpu has acquired another ship, the 2007-built 2,400 teu G Ace, for $13.7m.