HOUSTON: Oil and fuel tanker traffic was stable in the Red Sea in December, even though many ships have rerouted due to assaults by militants, western media reported on Tuesday.
The attacks have driven up shipping costs abruptly along with insurance premiums, but have had less effect than feared on oil flows, with transporters continuing to use the key East-West way. Earlier the Houthis said they are attacking Israel-bound containers after erupted in the Gaza Strip.
According to Reuters, the costs have not made a big difference to most transporters so far as the Red Sea remains much more inexpensive than sending cargo around Africa.
However, some oil companies diverting cargoes to the longer route and it increased transport costs are likely to enhance exports of US crude to some European purchasers, experts thought.
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Oil Tankers Continue Movements in Red Sea Despite Attacks
A daily average of 76 tankers carrying fuel and oil were in the south Red Sea in December. A shipping analyst at Lloyd’s List said that they have not really seen the disruption to oil tanker traffic that was expecting. The expert said that the additional cost of sailing about the Cape of Good Hope off Africa rather than through the Red Sea would make journeys to deliver oil less gainful, she said.
Since the start of December, chartering charges have roughly doubled, Marhelm company said. Some oil majors, trading houses and refiners have continued to utilize the Red Sea route, Reuters reported.
