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Houthi Attacks on Commercial Ships Cause Shipping Companies to Reroute Around Africa’s Southern Tip

The Iran-backed Houthis, who say they support Palestinians besieged by Israel in the Gaza Strip, have attacked commercial ships with drones and missiles, forcing shipping companies to change course and take longer routes around the southern tip of Africa.

According to ship tracking data from ship tracking data company LSEG, the tanker Egeorgis, chartered by British company BP to transport vacuum gas oil from India’s Jamnagar to Texas on Friday, was sailing along the east coast of Africa towards the Cape of Good Hope.

BP usually transported vacuum gas oil cargoes via the Red Sea. The new route adds nine days to the journey between India and the US Gulf Coast. Vacuum gas oil is a refined raw material used to produce gasoline and diesel.

A BP spokesman declined to comment. But he referred to a previous statement regarding the company’s decision to reroute the ships. The company said on Tuesday that it would avoid the Red Sea and direct ships around the Cape of Good Hope.

LSEG data also showed that the tanker Sonangol Cabinda, which is chartered by Equinor and transports crude oil from Texas to India, turned 180 degrees in the open Red Sea on Thursday and was sailing through the Suez Canal towards the Mediterranean Sea.

The United States said that the maritime coalition announced last week includes 20 countries. However, some did not confirm their participation, while others said that operations to protect navigation in the Red Sea would be part of existing maritime agreements. The lack of practical details for shipping companies has caused confusion for those still avoiding the area.

“We have also temporarily suspended new activities involving transit through the region,” an Equinor spokesman said on Tuesday. The spokesman said that ships currently in the area are being redirected or temporarily stopped.

The Houthi attacks prompted shipping companies to change their routes, causing many African ports to become congested with the number of ships entering their waters.

“War risk premiums for tankers traveling through the Red Sea have risen recently, making the longer route (Cape of Good Hope) less expensive for charterers,” said Jay Marrow, an analyst at energy data company Vortexa.

According to LSEG data, many tankers leaving ports east of Suez heading to non-American destinations changed their course or modified their course to avoid the Red Sea.

Other rerouted tankers include Bao Olympus, which is chartered by Equinor. The tanker left the US Gulf Coast on December 10, changed its course while crossing the Atlantic Ocean to Suez, made a 90-degree turn, and set its destination to Durban in South Africa.

Meanwhile, the tanker Almi Globe, chartered by BP, changed direction in the Mediterranean. The ship was heading to Suez until Thursday and then changed its destination to Las Palmas in Spain.

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2023-12-23 00:06:59

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