ASTANA – Chevron is rerouting Kazakh CPC Blend oil shipments to Asia via the Cape of Good Hope instead of the Red Sea to avoid attacks by Yemen’s Houthi rebels, reported Reuters news agency on Jan.30, citing three sources and LSEG ship-tracking data.
Photo credit: chevron.com.
The move comes in response to escalating attacks by Yemen’s Houthi rebels, prompting a strategic shift among several companies steering clear of the Red Sea and the Suez Canal, traditionally the most direct passage between Europe and Asia.
The surge in Houthi attacks and escalating delivery expenses constrain CPC Blend shipments destined for Asia. CPC Blend oil is typically dispatched to a terminal in Yuzhnaya Ozereevka, Russia, before being loaded onto tankers bound for global markets. The standard route to Asia spans from the Black Sea through the Mediterranean and onwards via the Suez Canal.
However, the new course involves a westward journey through the Mediterranean, followed by a southward route around Africa, resulting in heightened expenses and elongated delivery times by several days.
