Pioneer Tanker Sanctioned by US Passes Suez Canal Amid Shipping Crisis

The Pioneer tanker, which has been sanctioned by the United States due to its connections to Russia-sourced liquefied natural gas (LNG), recently passed through the Suez Canal with an LNG cargo, according to data from LSEG. The specific source of the LNG and the destination of the Palau-flagged Pioneer were not immediately disclosed. The tanker is owned by Zara Shipholding Co, with offices in Dubai and Mumbai.

Shippers have been avoiding the Suez route since late last year to steer clear of potential attacks by Iran-aligned Houthis in the Red Sea. The Suez Canal serves as a crucial trade link between Europe and Asia, handling nearly 12% of global cargo. The current crisis has prompted shipping companies to resort to longer routes, disrupting their schedules and increasing their operational costs.

Global fuel producers, including Russia, have had to adjust their delivery routes to Asia by circumnavigating Africa. Last month, the United States imposed sanctions on two companies and two vessels, including the Pioneer, due to their involvement in Russia’s Arctic LNG 2 project. This move is part of Washington’s efforts to penalize Moscow for its actions in Ukraine. The U.S. State Department reported that the Pioneer was engaged in a ship-to-ship gas transfer from Arctic LNG 2 on August 25.

Source