Red Sea: EU tankers take the long route
In 2023, EU sanctions on Russian oil exports resulted in a 10% increase in average sailing distances for EU tanker imports, says Niels Rasmussen, chief shipping analyst at Bimco.
Attacks on ships in the Red Sea area further lengthened average sailing distances by 16% and raised tonne mile demand by 12% in Q1/2024, despite a 4% drop in import volumes.
Tankers are increasingly rerouting via the Cape of Good Hope, causing Suez Canal transits to drop by 40-50%. Dirty tanker trades have seen their distances grow longer than clean tanker trades due to higher cargo volumes destined for Mediterranean ports.
Asian countries' share of EU dirty tanker imports has risen by 24%, while clean tanker imports from Asia have decreased by only 6%. VLCCs and smaller MRs and LR2s have benefited from the increased tonne miles.
The EU's importance for tanker trades has grown, with its import tonne miles rising from 11% to 14% of the total tanker trade between the first quarters of 2022 and 2024. However, the EU is expected to decarbonise faster than most regions, followed by a potential decline in the tanker trade in the medium to long term. (pb)