[Stay on top of transportation news: Get TTNews in your inbox.]
Rare Diesel Cargoes Move From US West Coast to Australia
3 Tankers Carry More Than 925,000 Barrels, Vortexa Port Data Shows
Key Takeaways:
- Tankers carrying U.S. West Coast diesel have begun arriving in Australia as the country confronts a fuel crisis triggered by the Iran war.
- More than 925,000 barrels are en route, a rarely used trade route that nearly matches six years of prior volumes as prices surge after the Strait of Hormuz closure.
- Australia is underwriting diesel purchases and turning to nontraditional suppliers, with the U.S. now supplying 18% of fuel and imports remaining elevated in April.
A string of tankers carrying diesel from the U.S. West Coast has begun arriving in Australia, as the continent tries to contain a fuel crisis triggered by the Iran war.
Three tankers, which have departed from Washington state and Los Angeles since March 30, are currently carrying over 925,000 barrels of ultra-low sulfur diesel and signaling their destination as Australia, according to port data compiled by energy analytics company Vortexa.
One vessel, the Marshall Islands-flagged Atlantic Guard, is currently under the effective control of energy trader Gunvor Group, according to Vortexa. Gunvor did not immediately respond to a request for comment.
The trade route from the West Coast to Australia is rarely used, but it has become a key conduit for the continent to address its fuel shortages since the Middle East conflict began. Despite being a major producer and exporter of energy, Australia sources the vast majority of its refined fuels from overseas and holds among the lowest stockpiles in the developed world.
RELATED: Oil Executives Warn Trump of Price Surge Lasting Months
The three ongoing voyages follow two other tankers that discharged 525,000 barrels of ULSD this week to Australia from British Petroleum’s Cherry Point Refinery in Washington state.
Altogether, the amount of diesel headed from the West Coast to Australia in the last two months nearly equals the total from the prior six years.
Fuel prices have surged in Australia since the start of the U.S.-Israel war on Iran in late February and the effective closure of the Strait of Hormuz, a key shipping route. The government has slashed taxes, tapped reserves and encouraged Australians to drive less. A fire at one of the country’s two refineries has only exacerbated the issue.
The country has also turned to nontraditional suppliers and is underwriting the purchase of diesel cargoes, Prime Minister Anthony Albanese said at a press conference April 23. The U.S. is supplying 18% of the country’s fuel at present, Albanese said. In March, the U.S. exported its first gasoline cargo to Australia since 2023.
“Australian fuel stocks have been fairly stable versus expectations of disaster, owing to product imports trending surprisingly high in April,” said Neil Crosby, head of research at Sparta Commodities.
