FOLLOWING the upheaval in Europe's energy supplies triggered by the invasion of Ukraine two years ago, the changing security dynamics in the Red Sea are once again influencing trade routes, reports Fort Lauderdale's Maritime Executive.
Kepler, a tanker trade tracker, reports that several tankers bound for the EU are altering their routes, circumventing the southern tip of Africa to mitigate the potential threat of Houthi attacks off the coast of Yemen.
"European countries are seen as complicit in the Israel-Hamas war. They would rather go around the Cape of Good Hope versus taking a chance through the Red Sea," said Kepler.
Due to the relatively slow movement of tankers, there is a consequential extension in the delivery schedule for oil shipments from the Middle East to Europe, adding a matter of weeks to both the outbound and return journeys.
This results in decreased tanker availability and elevated delivery costs and enhances the competitiveness of alternative suppliers in the Atlantic basin, particularly for certain commodities.
CNBC reports a shift in European customer preferences, with increased reliance on American and Brazilian refiners for diesel sourcing.
This trend indicates a reduction in dependence on traditional suppliers situated east of Suez.
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