War risk exclusions by insurers heighten stakes in Red Sea attacks

In early February, oil markets were lulled by hope of a now-unlikely ceasefire in the Israel-Hamas war. But a recent string of Houthi attacks have reignited concerns about the Red Sea crisis, raising the floor for tanker rates.

The Iran-aligned Houthis claimed responsibility for Friday’s attack on oil tanker M/T Pollux, which was bound for India. No injuries were reported.

This and other recent Houthi attacks, which followed a brief pause in early February, led major maritime insurer Steamship...

https://www.freightwaves.com/news/war-risk-exclusions-by-insurers-heighten-stakes-in-red-sea-attacks

Shipping faces lengthy disruptions as Middle East fallout worsens

chart of shipping stocks

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The Red Sea crisis — and the Middle East situation in general — is worsening. There’s growing...

https://www.freightwaves.com/news/shipping-faces-lengthy-disruptions-as-middle-east-fallout-worsens

Shipping fallout from Red Sea crisis spreads to product tankers

With no end in sight for the Red Sea crisis, detours around Africa’s Cape of Good Hope are soaking up even more vessel capacity and pushing up spot rates across multiple shipping segments.

Freight fallout began with container ships. It is now significantly impacting product tankers — the vessels that transport gasoline, diesel, jet fuel, naphtha and other petroleum products.

Larger product tankers that do long-haul runs are diverting around Africa in increasing numbers. These ship types include...

https://www.freightwaves.com/news/shipping-fallout-from-red-sea-crisis-spreads-to-product-tankers

Red Sea conflict worsens, forcing more ship detours around Africa

U.S. and U.K. airstrikes on Houthi positions in Yemen have not made the Red Sea any safer for shipping. “Red Sea issues are getting worse, not better,” said Stifel shipping analyst Ben Nolan.

The dry bulk carrier Gibraltar Eagle, owned by Connecticut-based Eagle Bulk (NYSE: EGLE), was struck by an anti-ship ballistic missile in the Gulf of Aden on Monday. The dry bulk carrier Zografia, owned by Greece’s Thenamaris, was hit by a missile in the southern Red Sea on Tuesday.

Energy shipper Shell...

https://www.freightwaves.com/news/red-sea-conflict-worsens-forcing-more-ship-detours-around-africa

As Red Sea risk spooks container shipping, tankers remain unfazed

Shipping investors love trade disruptions, which generally boost freight rates. The mass diversions of container ships around the Cape of Good Hope are cheered by container shipping stock investors even as pundits and politicians warn of supply chain fallout for consumers and businesses.

Tanker shipping investors look on in envy at container shipping chaos. Tankers, as well as dry bulk vessels, continue to transit the Red Sea and the Bab-el-Mandeb Strait, unbowed by the threat of Yemen’s Houthi...

https://www.freightwaves.com/news/as-red-sea-risk-spooks-container-shipping-tankers-remain-unfazed

Top ocean shipping stories of 2023: War, drought and detours

Ocean shipping routes are always in flux, but 2023 took it to a whole new level.

Trade routes were blocked or impeded by geopolitics, labor and weather: sanctions on Russia, U.S.-China tensions, dockworker union unrest, drought-driven cuts at the Panama Canal, and attacks on ships in the Red Sea.

Ocean trade detoured around each obstacle. When vessels divert in large numbers, it makes headlines, but that flexibility is one of ocean shipping’s greatest strengths. Ship diversions, as the software...

https://www.freightwaves.com/news/top-ocean-shipping-stories-of-2023-war-drought-and-detours

How Venezuelan invasion of Guyana could impact tanker shipping

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Shipping already faces fallout from two wars: trade shifts due to Russia’s invasion of Ukraine and...

https://www.freightwaves.com/news/how-venezuelan-invasion-of-guyana-could-impact-tanker-shipping

America’s energy boom: Crude exports soar to record high

a chart of US crude exports

As diplomats convene at the United Nations’ COP 28 climate change summit, fossil fuel production and consumption are hitting new highs, and tanker owners are in prime position to profit from rising trade flows.

The Biden administration is a leading proponent of decarbonization, yet the U.S. is pumping out record volumes of hydrocarbons. America is on track to be the world’s largest producer and exporter of natural gas this year, as well as the leading exporter of refined products and liquefied...

https://www.freightwaves.com/news/americas-energy-boom-crude-exports-soar-to-record-high

Another Panama Canal red flag: Spiking product tanker rates

chart of spot rates of tankers transiting Panama Canal

Yet another signal on the Panama Canal situation is flashing red: Spot rates are surging for product carriers — specialized tankers carrying diesel, gasoline and jet fuel — that transit the waterway.

America is the world’s largest exporter of refined petroleum products. The west coast of South America is a traditional destination and the Panama Canal is pivotal to this trade. Alternate routes are more than twice as long.

Since the Panama Canal Authority (ACP) began heavily restricting reservation...

https://www.freightwaves.com/news/another-panama-canal-red-flag-spiking-product-tanker-rates

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