{"id":76412,"date":"2024-01-30T00:00:00","date_gmt":"2024-01-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/01\/30\/red-sea-disruptions-are-having-a-spillover-effect-on-asian-fuel-markets\/"},"modified":"2024-01-30T00:00:00","modified_gmt":"2024-01-30T00:00:00","slug":"red-sea-disruptions-are-having-a-spillover-effect-on-asian-fuel-markets","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/01\/30\/red-sea-disruptions-are-having-a-spillover-effect-on-asian-fuel-markets\/","title":{"rendered":"Red Sea disruptions are having a spillover effect on Asian fuel markets"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><\/strong><strong>Two vessels transporting oil from Kuwait to Europe<\/strong><strong> have diverted away from the Red <\/strong><strong>Sea,<\/strong><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-29\/tankers-hauling-kuwaiti-oil-veer-from-red-sea-after-friday-blast\" style=\"\" rel=\"noopener\">Bloomberg<\/a> reports. Both vessels had signaled Suez as their next stop over the weekend, but diverted following <a target=\"_blank\" href=\"https:\/\/enterprise.news\/logistics\/en\/news\/story\/75d3d6fb-640d-4034-b3ab-fc4b94218e30\" style=\"\" rel=\"noopener\">an attack on a Trafigura-operated tanker<\/a> that saw the ship set ablaze. Despite the risks, KSA oil giant Aramco and other tanker operators \u2014 particularly those carrying Russian cargoes \u2014 are still navigating the Red Sea route. Six vessels carrying crude and other fuels transited into the Red Sea on Sunday, Bloomberg writes, citing tracking data.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Red Sea disruptions are having a spillover effect on Asian fuel markets, <\/strong><strong>boosting fuel rates for long distance and intra-Asia routes, <\/strong><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-29\/red-sea-shipping-crisis-sends-tremors-through-asia-fuel-markets\" style=\"\" rel=\"noopener\">Bloomberg<\/a> reports. Disruptions to routes have seen demand for clean tankers and dirty tankers hike 3% and 1%, the analyst said. Costs for shipping 35k tons of fuel from South Korea to Singapore have increased some 50% to USD 49k per day, over the last week \u2014 their highest since 2022 \u2014Bloomberg writes, citing Baltic Exchange data. Rates for larger tankers shipping cargoes from the Middle East to Japan are also at their highest since 2020. Fuel suppliers are nonetheless rolling out discounts for freight carriers in order to offset higher freight rate costs for consumers and maintain interest in the market. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>I<\/strong><strong>nflationary impacts due to Houthi-led attacks against commercial shipping<\/strong><strong> are \u201crelatively <\/strong><strong>muted,\u201d <\/strong><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-28\/biden-adviser-sees-limited-inflation-impact-from-red-sea-attacks\" style=\"\" rel=\"noopener\">Bloomberg<\/a> reports, citing an interview withUS President Joe Biden\u2019s energy security adviser Amos Hochstein on CBS\u2019s Face of the Nation (<a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/amos-hochstein-face-the-nation-transcript-01-28-2024\/\" style=\"\" rel=\"noopener\">watch, runtime: 06:26<\/a>). Inflationary effects due to the disruptions have affected logistics more than energy markets, Hochstein said. Oil prices are lower today than on 7 October, when Hamas\u2019 attack against Israel triggered the ongoing Hamas-Israel war and subsequent Houthi-led attacks against shipping in the Red Sea, Bloomberg writes. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Oman\u2019s ports are supporting carriers rerouting due to Red Sea disruptions<\/strong><strong> via three main axes<\/strong>,leveraging the country\u2019s strategic position along international trade routes, Oman\u2019s <a target=\"_blank\" href=\"https:\/\/www.asyad.om\/\" style=\"\" rel=\"noopener\">Asyad Ports Company<\/a> CEO Ahmed Al Abri told <a target=\"_blank\" href=\"https:\/\/www.alarabiya.net\/aswaq\/special-stories\/2024\/01\/29\/-%D9%85%D9%88%D8%A7%D9%86%D8%A6-%D8%A3%D8%B3%D9%8A%D8%A7%D8%AF-%D9%84%D9%84%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D9%86%D9%88%D8%A7%D8%AC%D9%87-%D8%A3%D8%B2%D9%85%D8%A9-%D8%A7%D9%84%D8%A8%D8%AD%D8%B1-%D8%A7%D9%84%D8%A3%D8%AD%D9%85%D8%B1-%D8%B9%D8%A8%D8%B1-3-%D8%A3%D9%86%D9%85%D8%A7%D8%B7-%D9%84%D9%84%D8%B4%D8%AD%D9%86\" style=\"\" rel=\"noopener\">Al Arabiya Business<\/a>. The first method sees carriers unloading their cargoes at Oman\u2019s Duqm Port before being picked up by vessels still choosing to transit the Red Sea. Another avenue sees cargoes unloaded at Duqm then transported to Red Sea ports by Asyad-operated vessels and feeder companies. A third method sees shipments unloaded at Duqm then transferred via a land bridge to GCC countries.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>S<\/strong><strong>hips arriving at Barcelona Port are seeing delays of 10 to 15 <\/strong><strong>days<\/strong><strong> due to diversions<\/strong>, <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/red-sea-crisis-causes-delays-10-15-days-barcelona-port-2024-01-29\/\" style=\"\" rel=\"noopener\">Reuters<\/a> reports, citing a statement by Barcelona port chief Lluis Salvado to reporters. The delays are impacing ships carrying all types of cargo, including liquified natural gas (LNG), with the port hosting one of the largest LNG terminals in Spain, the newswire said. Despite the delays Barcelona is less affected than ports in the Eastern Mediterranean due to it being closer to the reshuffled routes, Salvado was also cited as saying. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>IN DEFENSE NEWS-<\/strong><strong>Denmark has dispatched a frigate, dubbed Ivar Huitfeldt, to take part <\/strong><strong>in US-led <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/logistics\/en\/news\/story\/d0a63cf1-1c17-4cf6-9ae5-c7eb12e16a1d\" style=\"\" rel=\"noopener\">Operation Prosperity Guardian<\/a><\/strong><strong> countering Houthi attacks in the Red Sea<\/strong>, <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/danish-frigate-departs-red-sea-assist-us-led-operation-2024-01-29\/\" style=\"\" rel=\"noopener\">Reuters<\/a> reports. The warship\u2019s operations in the region are still pending Danish Parliamentary approval which is expected by 6 February, the newswire wrote. The Ivar Huitfeldt will not contribute to offensive raids against the Houthis and despite being equipped with surface to air systems and it cannot defend itself or neighboring vessels from attacks employing ballistic missiles, the newswire cites head of the Danish Navy Command Henrik Ryberg as saying. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Denmark dispatches frigate to join US-led naval force in the Red 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Sea disruptions are having a spillover effect on Asian fuel markets","related_issue":[76407],"teaser":"Denmark dispatches frigate to join US-led naval force in the Red Sea","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/1\/.2da74ca9-9f2f-4e2d-946c-5f7777860b2e.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Red Sea disruptions are having a spillover effect on Asian fuel markets - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2024\/01\/30\/red-sea-disruptions-are-having-a-spillover-effect-on-asian-fuel-markets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Red Sea 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