Container ship hits US-flagged tanker laden with jet fuel off UK coast

A US-flagged product tanker transporting jet fuel for the US military was hit by a container ship at anchor in the North Sea March 10, leading to oil spills and onboard fires before the crews abandoned the ships, according to parties involved, market sources and ship-tracking data.

Anchored off Hull, UK, the 50,000-dwt tanker Stena Immaculate was struck by the container ship Solong at about 10 am, ship manager Crowley said in a statement.

The MR, owned by Swedish shipping company Stena Bulk, sustained a ruptured cargo tank containing jet fuel due to the allision, and fuel was released, according to the US-based manager.

Germany-based Ernst Russ, which owns the 803-TEU Solong, did not immediately respond to an email seeking comment.

The Stena tanker is operated by Crowley's government services arm and was seen at NATO's naval base in Souda Bay last month, according to S&P Global Commodities at Sea(opens in a new tab). At the time of the incident, the ship was transporting 229,000 barrels of jet fuel from Greece's Motor Oil refinery to Immingham, CAS data showed. Market sources said the jet fuel belongs to the US military.

Limited market impact

The incident is not expected to have a strong, direct impact on the jet fuel and container freight markets due to the small volumes involved, but it occurred amid heightened geopolitical tensions and US involvement in the Russia-Ukraine and Israel-Hamas wars. It is not clear what caused the allision.

Supported by strong buying activity in preparation for summer air travel, the jet CIF Northwest European cargo differential to front-month ICE low sulfur gasoil futures rose $9/mt to $35.75/mt at the market close March 7, while the jet FOB FARAG barge differential was up $6/mt to $28.25/mt, according to Platts. Platts is part of S&P Global Commodity Insights.

The Platts Container Index, a weighted average of spot rate assessments on key routes, was assessed at $2,331.75/FEU March 7 and was last lower on Sept. 30, prior to the update of the index.

Rescue operations

The UK Coastguard and the Royal National Lifeboat Institution reported fires aboard both ships. Footage across social media platforms, filmed from a nearby ship, showed thick, dark smoke coming from them off East Yorkshire.

"The incident remains ongoing, and an assessment of the likely counter-pollution response required is being enacted," the Coastguard said.

Graham Stuart, a member of the British Parliament for Beverley and Holderness, told the BBC that all 37 crew members of the ships were rescued and that one of them was hospitalized.