A tanker carrying Iranian crude oil that is under US sanctions has altered its destination during its voyage from India to China, as per data from ship-tracking sources. This change in plans raises questions about what was anticipated to be India’s first import of Iranian oil in nearly seven years.
The vessel, named Ping Shun, an Aframax tanker constructed in 2002 and subject to US sanctions since 2025, is currently indicating Dongying in China as its destination, holding 600,000 barrels of Iranian oil. Initially, the tanker had indicated Vadinar in Gujarat as its target port, according to data from Kpler.
This development comes at a time when Indian refiners have been actively seeking opportunities to secure Iranian oil shipments while navigating the recent waiver on sanctions issued by the US government. If the shipment had reached India, it would have signified the country’s first intake of Iranian crude since 2019, when imports ceased due to stricter US sanctions.
Sumit Ritolia, the Lead Research Analyst at Kpler specializing in Refining and Modeling, mentioned that the vessel had been en route to Vadinar for three days before abruptly changing course near arrival and setting its sights on China. Ritolia suggested that the alteration in the voyage route could be linked to concerns regarding payment arrangements. He noted a shift in payment terms from the previous 30-60 day credit period to a preference for immediate or short-term settlements by sellers.
The parties involved in the cargo transaction, including the buyer and seller, have not been disclosed. It is important to note that the destination displayed on a ship’s Automatic Identification System (AIS) can be modified at any point during the journey and may not always be accurate.
Although mid-voyage route modifications in Iranian crude shipments are not unusual, they underscore the increasing importance of financial considerations and counterpart risks in these trades. Ritolia suggested that if payment issues are resolved, the cargo could potentially be redirected to an Indian refinery. This situation highlights the evolving significance of commercial terms alongside logistical factors in determining the flow of Iranian crude to destinations other than China.
India’s Ministry of Oil has emphasized that any decision regarding the resumption of imports from Iran will be based on techno-commercial viability. Prior to the imposition of stricter sanctions in 2018, India was a significant purchaser of Iranian oil, acquiring both light and heavy grades due to competitive pricing and compatibility with domestic refineries.
Iranian oil accounted for 11.5% of India’s total imports, with the country importing 518,000 barrels per day in 2018. This figure declined to 268,000 barrels per day between January and May 2019 during a limited waiver period granted by the US. Since then, imports have not been reinstated.
After the cessation of Iranian imports in May 2019, India diversified its sources to include supplies from the Middle East, the US, and other oil-producing nations. The primary grades previously sourced by Indian refiners were Iran Light and Iran Heavy.
In a bid to stabilize oil prices amidst the ongoing US-Israel conflict involving Iran, the US recently issued a 30-day waiver permitting the purchase of Iranian oil at sea. This waiver is slated to expire on April 19.
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