Kpler: Oil shipment times to Asia could double if Bab el-Mandeb Strait is disrupted

Golden Ten Data reported on March 30th that Muyu Xu, Senior Crude Oil Analyst at Kpler, stated that if any potential disruption occurs in the Bab el-Mandeb Strait, crude oil shipments may be forced to reroute around the Cape of Good Hope, which would double transit times and increase costs. "Ship owners may choose to divert westward, transiting the Suez Canal and then around the Cape of Good Hope to transport Saudi crude oil to Asia, but this journey would take nearly 50 days, more than twice the time required for transportation via the Red Sea, and would substantially weaken the market's immediate supply capacity." The rerouting would significantly increase costs due to higher freight rates and increased fuel consumption, while also forcing the global oil tanker fleet to be redeployed, as very large crude carriers (VLCCs) are unable to transit the Suez Canal.