Red Sea fix? China-bound oil tankers tap Saudi plan to bypass Strait of Hormuz

Saudi Arabia is activating its Red Sea “Plan B” to divert crude via the port of Yanbu, allowing tankers – including Chinese very large crude carriers (VLCCs) – to bypass the Strait of Hormuz.

Analysts warn the route has limited capacity.

South China Morning Post

New Vista, a VLCC owned by China Merchants Energy Shipping, had departed from Yanbu and was bound for Quanzhou in south China’s Fujian province, where it is expected to arrive on April 3, according to vessel-tracking data platform Myvessel.

The oil tanker had approached the Strait of Hormuz on March 1 but did not transit the strategic waterway.

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Discoveryalert

That same day, at least three tankers near ports in the United Arab Emirates and Oman were struck by projectiles, causing fires and crew casualties.

New Vista instead altered course towards the Red Sea, arriving at Yanbu on March 11 and departing on March 13 after loading.

More tankers in the Red Sea are now en route to the port for similar crude oil pickups.

“The Yanbu route is open to all international buyers, but China-bound cargoes are expected to take a significant share, given that China is a major customer of Saudi Aramco,” said Xu Muyu, a senior crude oil analyst at Kpler.

Korea JoongAng Daily