Ships Reroute to Avoid Red Sea as Houthi Attacks Intensify
Ships Change Routes Due to Houthi Threats
At least two ships transporting oil or oil products between the U.S. Gulf Coast and India have changed their routes to avoid the Red Sea. This decision comes as a U.S.-led coalition prepares to protect vessels from attacks by Yemen’s Houthi militants. The Houthi attacks have forced shippers to take longer routes around the southern tip of Africa, causing significant disruptions in the shipping industry.
Impact on Shipping Companies
The Aigeorgis, chartered by BP to carry vacuum gasoil (VGO) from India to Texas, is now taking a route along Africa’s East Coast toward the Cape of Good Hope, adding nine days to its journey. This change in route has significant implications for BP’s VGO shipments from Jamnagar, historically routed through the Red Sea. The Sonangol Cabinda, chartered by Equinor to carry oil from Texas to India, also made a 180-degree turn in the middle of the Red Sea on Thursday, avoiding the region altogether.
International Response to Protect Commercial Traffic
The U.S.-led naval coalition announced last week has involved 20 countries, but some have not confirmed their participation. Confusion remains as shippers continue to avoid the region, causing African ports to become overwhelmed with the influx of ships.
Impact on Tankers and Shipping Routes
Multiple tankers departing ports east of Suez bound for non-U.S. destinations have also changed course or re-routed to avoid the Red Sea. War risk premiums for tankers traveling via the Red Sea have been rising, making the longer Cape of Good Hope route a more viable option for charterers.
Challenges Faced by Shippers
The Houthi attacks have led to significant challenges for shippers, causing delays and disruptions in shipping routes. Companies like Equinor have paused new activities and rerouted or paused ships currently in the region in response to the ongoing threats.
