Russian maritime oil exports to Asia via the Cape of Good Hope in South Africa nearly doubled on a monthly basis in July, reaching 1.1 million metric tons, according to Reuters, citing maritime transport data.
Global shipping companies have ceased using the Suez Canal, a critical maritime route, redirecting their vessels instead to the southern tip of Africa due to Houthi rebel attacks on ships in the Red Sea.
Market and maritime transport data indicate that the majority of Russian exports via the new route consisted of naphtha, totaling 0.83 million tons. Shipments of fuel oil loaded at Russian Baltic ports of Ust-Luga and Vysotsk, as well as low-sulfur diesel from Primorsk, were also delivered via the Cape of Good Hope.
Russian petroleum exports were destined for Singapore, Taiwan, India, and China, according to LSEG data. Since the EU’s oil embargo on Russian products last year, Asia has become the primary market for Russian fuel oil and naphtha, Reuters reported.
Total petroleum shipments from Russia’s western and southern ports amounted to approximately 9 million tons in July.
Additionally, the Houthis, based in Yemen, have conducted dozens of drone and missile attacks on ships traversing the Red Sea since the onset of the war between Israel and Hamas in October. The Houthis are targeting ships they believe are linked to Israel as part of what they claim is a show of solidarity with the Palestinian people.
This situation has significantly impacted traffic through the Suez Canal, a vital route between Asia and Europe that typically handles about 15% of global maritime trade. Redirection of vessels to the Cape of Good Hope has increased average delivery times by over ten days. Consequently, average container and tanker rates for some destinations have reached record levels.
In March, the Houthis assured China and Russia that their ships could safely transit the Red Sea and the Gulf of Aden without fear of attack. Some vessels reportedly display signs stating “Russian Crew Onboard” or “Russian-Origin Cargo Onboard.”
