India-bound Iranian oil tanker reroutes to China over payment concerns
Kpler
This story was originally published at 12:55 IST on 4 April 2026
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NEW DELHI – A cargo ship containing 600,000 barrels of Iranian crude oil initially bound for India has altered course mid-voyage to China, according to ship-tracking firm Kpler. The vessel Ping Shun, which was heading toward Vadinar in Gujarat over the past three days, is now signalling China as its destination.
The change in a vessel's declared destination near arrival is believed to be linked to evolving payment conditions, Sumit Ritolia, lead research analyst, refining and modelling at Kpler, said. Market sources indicate that sellers of Iranian crude are tightening credit terms, shifting away from the earlier 30–60 day payment window toward upfront or near-term settlement requirements, according to Ritolia.
Such mid-voyage destination changes are not unprecedented with Iranian crude, but the episode highlights the increasing sensitivity of trade flows to financial terms and counterparty risk, he said.
"If the payment issues are resolved, the cargo could still make its way to an Indian refinery," he said, adding that the episode demonstrates that commercial considerations are becoming as critical as logistical factors in determining the flow of Iranian crude, particularly for buyers outside China.
The oil cargoes on Ping Shun would have been the first Iranian crude shipment to arrive in India since 2019. Indian refiners have been looking at opportunities to purchase a few cargoes of Iranian oil at sea following the recent sanctions waiver by the US. The US last month waived sanctions on the purchase of Iranian oil at sea till Apr. 19 in its latest attempt to ease oil prices that have surged since the US-Israel combine's attack on Iran. End
Reported by Pallavi Singhal
Edited by Tanima Banerjee
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