EXXONMOBIL has chartered two tankers to ship about 600,000 barrels of petrol, diesel and avgas from Texas to Australia, in a move the Australian Maritime Officers Union says only serves to underline the nation’s reliance on foreign-flag shipping.
Reuters has reported two medium-range tankers, the JP Morgan-controlled, Liberia-flag, 49,999 DWT Largo Eagle and the WECO-controlled, Panama-flag, 49,999 DWT Nord Ventura, both sublet from commodities trader Vitol, to load in Houston between 13-16 March and 15-18 March respectively.
The news agency says charter costs for a single tanker on this route are estimated at US$6 million, or roughly $20 per barrel, with the charters attributable to the major disruption to Middle East supplies caused by the Iran war.
ExxonMobil once operated a number of refineries in Australia, including at Altona in Victoria and Port Stanvac in South Australia, but is now a pure importer through terminals at Birkenhead (Port Adelaide), Yarraville (Melbourne) and Silverwater (Sydney, via Kurnell).
The AMOU said shipments from the U.S. Gulf Coast is a wake-up call. While the fuel is moving, the problem is clear. It’s not being moved by us.
“Currently, we are reliant on foreign-flagged tankers to bridge the gap caused by our lack of domestic storage.
“Without a sovereign fleet, Australia is effectively a "price-taker" in a volatile global market, watching essential supplies navigate shipping disruptions from the sidelines.
“This is exactly why the AMOU and industry partners are calling for a National Strategic Fleet. We don’t just need fuel; we need the state-backed maritime infrastructure to carry it. A government-supported fleet of Australian-flagged and crewed tankers would ensure that in times of crisis—like the current Middle East instability—we aren't just hoping for a delivery; we are commanding it.
“It’s time to stop offshoring our security. We need Australian ships, manned by Australian officers with the strategic fleet tanker skills to protect our supply chains,” the union said.
Reuters noted that U.S. and Israeli attacks on Iranian targets have also forced some regional oil and gas fields to shut down, resulting in energy companies looking for alternative supply routes, including long-distance shipments from the U.S. Gulf Coast to Asia-Pacific markets.
Analysts say such shipments are costly and may not continue if freight rates remain high.
Asian refiners have already reduced processing rates because of crude shortages, and damage to some Middle Eastern port infrastructure could slow the recovery of normal trade flows.