Tankers are transferring oil shipments from Gulf producers to the Kutch Gulf due to congestion in the waters near the Strait of Hormuz. This change in route has significantly increased, especially since the onset of the war in Iran.
Impact of the War on Maritime Transport
The war in Iran and the resulting restrictions have led to delays in shipments and rerouting them to areas farther from the conflict zone. These changes have driven tanker rental costs above one million dollars per day, increasing price pressures on crude oil and refined fuels.
Read more: Kpler reports full recovery of oil exports from Gulf Arab countries
Transfer of Shipments to the Kutch Gulf
According to tanker tracking data, the Kutch Gulf, located on the western coast of India, has emerged as a new point for transferring shipments to larger tankers. Two large tankers have recently conducted transfers in this area, with their destinations being East Asia, particularly Singapore and South Korea.
This is the first time oil shipments from the Gulf have been observed heading east in this region. Currently, at least two other tankers are also transferring shipments in this area. Given the restrictions and dangers in the Strait of Hormuz, Middle Eastern oil producers are secretly transferring shipments through the strait and then unloading them in safe areas near Oman or the United Arab Emirates.
Challenges in New Routes
New routes for transferring shipments have become heavily congested, and local infrastructure for conducting maritime transfers is facing challenges. The time required to complete transfers from large tankers has increased to five or six days. This bottleneck has become one of the main reasons for transportation delays in the region.
Transferring shipments on the western coast of India may also provide additional security advantages and reduce the risks of attacks on vessels. However, Iranian officials have recently warned that the war may extend towards the Indian Ocean.
Read more: COSCO Shipping Specialized Carriers establishes 14 new tankers · Delays in fueling ships at Zhoushan port in China due to supply shortages
