In a recent development, three oil tankers owned by Greek companies are taking a much longer sea route to deliver crude oil from Russia to buyers in Asia, instead of using the usual shortcut through the Suez Canal.
The vessels, namely, Agios Gerasimos, Nissos Antimilos and King Philippos, are all sailing from Russia’s Baltic Sea and appear to be heading toward India, according to shipping data tracked by Bloomberg.
Meanwhile, a fourth ship named Amades, also seems to be following the same route.
Instead of using the regular route via Egypt’s Suez Canal and the Red Sea, these ships are traveling around the entire African continent. This detour adds thousands of extra miles to the journey.
Per tracking information, these tankers are loaded with Urals crude, Russia’s main export-grade oil.
Urals is priced below $60 a barrel, which means Western tankers are still allowed to transport it under the current rules, as long as the price cap is respected.
Even though these voyages are not breaking any sanctions, such long routes are unusual for this kind of trade. The decision to choose the longer route has raised questions about the shipment.
The shipowners haven’t commented on the decision but many European shipping firms have been staying away from the Red Sea in recent months.
The reason is the increased threat of attacks by the Iran-backed Houthi rebels on commercial ships in the region.
The longer route adds more time and fuel costs to the journey, but ship operators may consider it a safer option compared to the risks in the Red Sea.
Shipping analysts believe that if more vessels continue to avoid the Suez Canal due to security concerns, it could affect global shipping schedules and increase freight costs for oil and other goods.
Reference: Bloomberg
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