India's Petroleum Exports Now Take Longer Route to Europe Due to Red Sea Risks
As threats to merchant vessels continue in the Red Sea, India's petroleum product shipments bound for Europe have completely switched to the longer route around Africa. According to vessel tracking data, not a single fuel carrier leaving Indian ports in June and July opted for the usual Suez Canal passage, relying solely on the Cape of Good Hope route instead.
Traditionally, tankers transporting Indian fuels to European markets barely utilized the circumnavigation of Africa due to the significantly greater distance and costs involved. However, attacks by Houthi rebels in the Bab-el-Mandeb strait connecting the Red Sea and Gulf of Aden have rendered the Suez Canal route untenable for the time being. Taking the Cape route adds around two additional weeks to voyages and substantially increases freight charges.
Data shows India's petroleum exports to Europe have dipped in recent months from last year's peak, with increased supplies heading to Asian consumers helping offset the decline. Analysts note the Middle East has also stepped in to fulfil European demand for diesel and jet fuel. While Indian shipments have adjusted routes, Russian oil cargoes appear exempt from targeting and continue transiting the Red Sea as usual.
With no resolution to tensions yet, industry experts consider it unlikely the strategic Suez Canal-Red Sea corridor will regain popularity among vessel operators any time soon. The rerouting has subsequently lowered the portions of global crude and oil product flows passing through the vital trade artery. However, India remains committed to safely delivering vital fuels wherever demand arises.
