Tankers Divert to Egypt as Houthi Threat Upends Red Sea Trade

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Or sign-in if you have an account.Supertankers are racing from different parts of the world to reach Egypt's Sidi Kerir, where Saudi Arabia is known to export some of its crude. Source: Bloomberg(Bloomberg) — Empty supertankers are heading to Egypt’s Mediterranean port of Sidi Kerir to collect Saudi crude as observable traffic at the kingdom’s key Red Sea export hub dwindles following threats from Houthi militants.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAt least eight very large crude carriers are signaling Sidi Kerir and are set to arrive in the coming weeks through to mid-August, ship-tracking data shows. State-owned Saudi Aramco has been offering more oil from the Egyptian port after Iran-backed Houthis struck a vessel in the Red Sea last week.There were no tankers observed at the Saudi port of Yanbu in the Red Sea early Tuesday, although vessels may have picked up cargoes with their transponders switched off to avoid detection. The export hub became crucial after the Iran war started, allowing the kingdom to bypass the Strait of Hormuz by piping million of barrels a day to its west coast for export to global customers.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSome shipowners may be hesitant to sail to Saudi Arabia after some insurance providers began restricting coverage for any vessels calling at the kingdom’s ports due to the risk of attacks, according to ship and insurance brokers.The Marshall Islands-flagged VLCC Bidbid is currently sailing to Sidi Kerir and is expected to pick up its cargo on Wednesday for delivery to Asia, shipping data shows. Two others, VL Bright and Taga, were heading for the US before abruptly switching their destinations to the Egyptian port, with the latter sailing almost exclusively on voyages to Japan in recent months.The remaining five ships bound for Sidi Kerir are all controlled by South Korea’s Sinokor Group, a privately-held company that has been among the most active in Hormuz since the Iran war started at the end of February. Sinokor, Bidbid’s manager Asyad Shipping, VL Bright’s owner Hyundai Glovis, and Taga’s owner Nippon Yusen KK didn’t immediately respond to requests for comment. For a vessel to collect Saudi crude from Sidi Kerir, oil is usually picked up at Yanbu by a tanker and then transported to the Egyptian port of Ain Sukhna in the Red Sea. From there, it’s pumped north to the country’s export hub on the Mediterranean via the Suez-Mediterranean Pipeline, known as SUMED.Saudi Arabia has been rushing to export more oil through the northern route out of the Red Sea after Yemen-based Houthi rebels implemented a blockade and then attacked vessels along the southern route near Bab el Mandeb. Traffic through the strait remained brisk on Monday, according to data compiled by Kpler, with ships carrying Russian crude transiting.Over the past week, only Chinese ships and vessels owned by countries friendly with Iran have continued to transit Bab el Mandeb, while western tankers and more risk-averse Asian shippers have opted for the costlier and longer route via the Suez Canal.In the Strait of Hormuz, observable traffic was scant. Rotterdam Energy, a supertanker controlled by Sinokor, showed up in the Persian Gulf after last broadcasting from the Gulf of Oman, a sign that it may have entered the region with its transponders off. —With assistance from Kanoko Matsuyama.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.