UK BP Abandons Red Sea Shipping Route... "Detour Adds Up to 9,000 km and Up to 10 More Days"

UK BP Temporarily Halts Shipping in Red Sea
Concerns Over Logistics Chaos if Suez Canal Blocked

British BP, one of the world's six major 'Big Oil' companies, has abandoned shipping through the Red Sea. Amid recent attacks by Yemen's Houthi rebels targeting civilian cargo ships in the area, concerns are growing that another global logistics crisis could unfold.

On the 18th (local time), the British public broadcaster BBC reported that BP has suspended all transportation of petroleum products through the Red Sea. BP cited the "deteriorating security situation" along the Red Sea route and stated that it is "monitoring the situation in the area."

According to the media, market analysts predict that if other oil companies follow BP's move, it could have a significant impact on international oil prices. Already, Brent crude, one of the international oil price benchmarks from the North Sea, has risen 2.6%, approaching $79 per barrel.

The Norwegian-flagged tanker 'Strinda' shown on the 12th (local time). On the same day, the Iran-backed Houthi rebels in Yemen attacked the Strinda, which was passing through the Bab al-Mandeb Strait at the entrance to the Red Sea, with missiles. [Image source=Yonhap News]

Gregory Brew, an oil analyst at Eurasia Group, told the BBC, "At this point, it is unclear how significant the impact of BP's suspension will be," but he added, "If more shipping companies switch their routes and the suspension lasts for one to two weeks, prices will rise further."

The Red Sea is a major route for transporting oil, liquefied natural gas (LNG), and consumer goods. According to analysis by S&P Global Market Intelligence, 21.5% of refined oil products and 13% of crude oil are transported worldwide through this route.

If the Red Sea route is blocked, ships can bypass the Suez Canal and detour around the Cape of Good Hope in Africa. However, sailing via the Cape of Good Hope instead of the Suez Canal increases the total Europe-Asia voyage distance by 9,000 km and adds 7 to 10 days to travel time. Even if ships insist on using the Suez Canal to shorten the distance, maritime insurance premiums surge due to the risk of war, leading to higher shipping costs regardless.

Meanwhile, in the aftermath of the war between Israel and the Palestinian armed group Hamas, the Houthi rebels have been attacking civilian ships passing through the Red Sea. Most of these attacks are reportedly carried out using drones and missiles.

Following BP's suspension of operations, the U.S. government has formed an international fleet to protect the route. This fleet includes warships from the United Kingdom, Canada, France, Bahrain, Norway, and Spain.

U.S. Secretary of Defense Lloyd Austin stated on the 18th, "(The Houthi rebels') attacks are reckless, dangerous, and violate international law," adding, "We are taking measures to build an international coalition to respond to these threats."

This content was produced with the assistance of AI translation services.