Saudi Arabia Reroutes Oil via Suez as Asia Voyages Stretch to 48 Days
Updated
Updated · Devdiscourse · Jul 23
Saudi Arabia Reroutes Oil via Suez as Asia Voyages Stretch to 48 Days
3 articles · Updated · Devdiscourse · Jul 23
Summary
Saudi Arabia is diverting crude exports through Egypt’s Suez Canal as disruptions in both the Hormuz and Bab el-Mandeb straits hit its usual shipping lanes.
The detour is costly because most Saudi barrels now head to Asia, forcing tankers to sail around Africa and pushing voyage expenses to about $2.87 million from $1.26 million.
48-day trips are also straining logistics, with larger tankers unable to fully transit Suez and needing to pass half-empty because of canal size limits.
Saudi Arabia is responding by using Egypt’s Sumed pipeline and, earlier, by offering extra crude cargoes from Sidi Kerir to keep exports moving amid Red Sea security risks.