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Two vessels transporting oil from Kuwait to Europe have diverted away from the Red Sea,Bloomberg reports. Both vessels had signaled Suez as their next stop over the weekend, but diverted following an attack on a Trafigura-operated tanker that saw the ship set ablaze. Despite the risks, KSA oil giant Aramco and other tanker operators — particularly those carrying Russian cargoes — are still navigating the Red Sea route. Six vessels carrying crude and other fuels transited into the Red Sea on Sunday, Bloomberg writes, citing tracking data.
Red Sea disruptions are having a spillover effect on Asian fuel markets, boosting fuel rates for long distance and intra-Asia routes, Bloomberg reports. Disruptions to routes have seen demand for clean tankers and dirty tankers hike 3% and 1%, the analyst said. Costs for shipping 35k tons of fuel from South Korea to Singapore have increased some 50% to USD 49k per day, over the last week — their highest since 2022 —Bloomberg writes, citing Baltic Exchange data. Rates for larger tankers shipping cargoes from the Middle East to Japan are also at their highest since 2020. Fuel suppliers are nonetheless rolling out discounts for freight carriers in order to offset higher freight rate costs for consumers and maintain interest in the market.
Inflationary impacts due to Houthi-led attacks against commercial shipping are “relatively muted,” Bloomberg reports, citing an interview withUS President Joe Biden’s energy security adviser Amos Hochstein on CBS’s Face of the Nation (watch, runtime: 06:26). Inflationary effects due to the disruptions have affected logistics more than energy markets, Hochstein said. Oil prices are lower today than on 7 October, when Hamas’ attack against Israel triggered the ongoing Hamas-Israel war and subsequent Houthi-led attacks against shipping in the Red Sea, Bloomberg writes.
Oman’s ports are supporting carriers rerouting due to Red Sea disruptions via three main axes,leveraging the country’s strategic position along international trade routes, Oman’s Asyad Ports Company CEO Ahmed Al Abri told Al Arabiya Business. The first method sees carriers unloading their cargoes at Oman’s Duqm Port before being picked up by vessels still choosing to transit the Red Sea. Another avenue sees cargoes unloaded at Duqm then transported to Red Sea ports by Asyad-operated vessels and feeder companies. A third method sees shipments unloaded at Duqm then transferred via a land bridge to GCC countries.
Ships arriving at Barcelona Port are seeing delays of 10 to 15 days due to diversions, Reuters reports, citing a statement by Barcelona port chief Lluis Salvado to reporters. The delays are impacing ships carrying all types of cargo, including liquified natural gas (LNG), with the port hosting one of the largest LNG terminals in Spain, the newswire said. Despite the delays Barcelona is less affected than ports in the Eastern Mediterranean due to it being closer to the reshuffled routes, Salvado was also cited as saying.
IN DEFENSE NEWS-Denmark has dispatched a frigate, dubbed Ivar Huitfeldt, to take part in US-led Operation Prosperity Guardian countering Houthi attacks in the Red Sea, Reuters reports. The warship’s operations in the region are still pending Danish Parliamentary approval which is expected by 6 February, the newswire wrote. The Ivar Huitfeldt will not contribute to offensive raids against the Houthis and despite being equipped with surface to air systems and it cannot defend itself or neighboring vessels from attacks employing ballistic missiles, the newswire cites head of the Danish Navy Command Henrik Ryberg as saying.
