- Venezuela's key cargo gateway, La Guaira, has already been placed under a disaster declaration, increasing concerns over shipping schedules and port operations.
- According to Kunal Khanna, Managing Director - Reinsurance & Global Head of Natural Resources at EDME Insurance Brokers Ltd, Venezuela has only recently emerged as a key source of crude oil for Indian refiners.
- "India's exposure is growing because Venezuela has become an increasingly important supplier in a very short period of time," Khanna noted.
- Disruptions at Venezuelan ports could delay shipments and increase insurance costs.
- Power outages, damaged transport links and emergency restrictions at ports in Venezuela can slow cargo movements for days or even weeks.
- Any prolonged disruption could therefore have both operational and financial implications for Indian interests.
- For tanker operators, delays can quickly translate into higher costs.
- "The corridor was evaluated mainly through the lens of shipping and political risks. Natural catastrophe exposure is now part of the equation," he said.
India's oil supply faces significant disruptions as Venezuela's La Guaira has been declared a disaster zone following a series of earthquakes.1
The recent earthquakes, measuring 7.2 and 7.5 in magnitude, have caused extensive damage, leading to power outages and damaged transport links.
Kunal Khanna, Managing Director at EDME Insurance Brokers Ltd, noted, "India's exposure is growing because Venezuela has become an increasingly important supplier in a very short period of time." As India's oil imports from Venezuela have surged, the country has become a key crude supplier.23
However, disruptions at Venezuelan ports could delay shipments and increase insurance costs.4
Khanna emphasized that any prolonged disruption could have both operational and financial implications for Indian interests. He stated, "The corridor was evaluated mainly through the lens of shipping and political risks. Natural catastrophe exposure is now part of the equation."68
With La Guaira under disaster declaration, concerns over shipping schedules and port operations are heightened, potentially leading to increased costs for tanker operators due to delays.
The situation underscores the vulnerability of India's oil supply chain as it increasingly relies on Venezuelan crude amidst natural disasters.
“India's oil imports from Venezuela have surged, making it a key crude supplier. However, disruptions at Venezuelan ports could delay shipments and increase costs.”
