Bloomberg: Saudi Arabia Resorts to Rare African Sea Routes to Avoid Red Sea Escalation
Bloomberg monitors shifts in Saudi oil tanker movements, including circumnavigating the Cape of Good Hope and an increase in covert maritime activity, amid rising insurance costs and the continued transit of some vessels through the Bab el-Mandeb Strait.
NYN | Reports and Analyses
Bloomberg revealed noticeable shifts in Saudi oil export movements, with a number of crude tankers belonging to the Kingdom resorting to alternative maritime routes passing around the south of the African continent. This step aims to avoid risks associated with security tensions in the Red Sea and the Bab el-Mandeb Strait.
Saudi Tankers Reroute Away from Bab el-Mandeb
The agency reported that six oil tankers owned by the Saudi company Bahri are taking a route around the Cape of Good Hope to Gibraltar instead of transiting through the Bab el-Mandeb Strait. This rare route adds approximately two weeks to the journey duration but reduces potential navigational risks.
It added that the Kingdom has redirected a portion of its oil exports bound for Asian markets via Egypt’s Sidi Kerir port, while simultaneously studying new cargo pricing mechanisms in light of recent developments.
Rising Shipping and Insurance Costs
Bloomberg pointed out that global insurance companies, particularly in London, have expanded the coverage of war risk premiums to include additional parts of the northern Red Sea, which has impacted maritime transport and vessel insurance costs.
Chinese and Russian Ships Continue Transit
Despite ongoing security risks, the agency clarified that vessels flying Chinese and Pakistani flags, along with tankers carrying Russian oil, continued their transit through the Bab el-Mandeb Strait. Meanwhile, Korean tankers and other ships preferred to alter their routes to capitalize on rising freight rates.
Unusual Maritime Activity in the Gulf
The report highlighted an escalation in what it described as non-traditional maritime activity in the Arabian Gulf and the Strait of Hormuz. Very Large Crude Carriers (VLCCs) carrying Saudi, Iraqi, and Emirati crude were spotted transiting after turning off their Automatic Identification System (AIS) transponders, a move aimed at minimizing the ability to track their routes.
The agency also recorded five VLCCs anchored off Egypt’s Sidi Kerir port, alongside unusual maritime maneuvers—including the gas carrier Al Areesh altering its course toward the Sultanate of Oman, despite Pakistan previously announcing it as its final destination.
According to the agency, these developments reflect the growing challenges facing energy trade movements in the region amid persistent security tensions, accompanied by changes in global shipping routes and surging transport and insurance costs.
