More ships carrying oil avoid Red Sea route
By Georgina McCartney and Arathy Somasekhar
HOUSTON (Reuters) — At least two ships transporting oil or oil products between the U.S. Gulf Coast and India on Friday were re-routing from the Red Sea, according to vessel tracking data, as a U.S.-led coalition geared up to help safeguard vessels from attacks by Yemen's Houthi militants.
Iran-backed Houthis, who say they are supporting Palestinians under siege by Israel in the Gaza Strip, have attacked commercial shipping with drones and missiles, forcing shippers to change course and take longer routes around the southern tip of Africa.
The Aigeorgis, which was chartered by BP (NYSE:BP) to carry vacuum gasoil (VGO) from India's Jamnagar to Texas, on Friday was headed along Africa's East Coast toward the Cape of Good Hope, according to financial firm LSEG's ship tracking data.
BP's VGO shipments from Jamnagar historically moved through the Red Sea. The new route adds nine days to the journey between India and the U.S. Gulf Coast. VGO is a refining feedstock used to produce gasoline and diesel.
«War risk premiums for tankers traveling via the Red Sea have been rising of late so that can make the longer (Cape of Good Hope) route a slightly less bitter pill for charterers,» said Jay Maroo, an analyst at energy data firm Vortexa.
A BP spokesperson declined to comment on the Aigeorgis but referred to an earlier statement on its decision to re-route ships. The company had said on Tuesday it would avoid the Red Sea and route vessels around the Cape of Good Hope.
The Sonangol Cabinda, chartered by Equinor to carry crude oil from Texas to India, did a 180-degree turn in the middle of the Red Sea on Thursday and was moving through the Suez Canal toward the Mediterranean, LSEG
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