Chinese very large crude carriers have resumed Saudi oil transport but are rerouting around Africa and using Egypt as a transfer point due to heightened Red Sea security risks, impacting a key Asian energy route.
The rerouting of Chinese supertankers around Africa due to Red Sea attacks significantly increases shipping costs and transit times, impacting global energy supply chains and potentially influencing crude oil prices.
Chinese very large crude carriers have resumed transporting Saudi oil after a weeklong pause, but are now using Egypt as a transfer point and rerouting around Africa. This significant shift is driven by heightened security risks in the Red Sea, forcing a costly overhaul of one of Asia’s key energy supply routes.
The tanker Yuan Xi Hu, a 330,000-deadweight-ton vessel operated by China COSCO Shipping Corp., arrived offshore from Egypt’s Mediterranean port of Sidi Kerir on August 4. It had been waiting to load crude. The ship had remained near Saudi Arabia’s Yanbu port after entering the Red Sea on July 11, following a Houthi announcement of a maritime blockade against Saudi Arabia.