Tanker Market: Saudi Arabia’s New Strategy Shifting Crude Volumes¶
inHellenic Shipping News31/07/2026
Source: Xclusiv
According to Xclusiv, “the numbers illustrate the scale of this transformation. Based on Signal Ocean data, between January and 23 July 2026, Yanbu loaded more than 80 million metric tons of crude oil, equivalent to almost 588 million barrels, nearly four times the volume exported during the comparable pre-Middel East crisis period. The turning point came in March 2026, when monthly exports surged above 13 million mt before remaining consistently above 16 million mt throughout the second quarter. While Egypt continues to receive the largest share of Yanbu exports, direct shipments to South Korea, China, India and Malaysia have expanded significantly, demonstrating how Saudi Arabia is increasingly utilizing the East-West Pipeline to bypass the Strait of Hormuz and maintain uninterrupted supplies to Asian customers. Almost the 70% of the crude oil exports through Yanbu are going towards China, India and east Asia, while in 2025 Egypt was the dominant buyer, taking 52.8% of the total crude oil exports and East Asia exports were less than 25%”.
The shipbroker added that “ironically, as one strategic bottleneck becomes less important for Saudi exports, another is rapidly emerging. The Houthis’ latest declaration that vessels calling at Saudi ports could become legitimate targets fundamentally changes the risk profile of the Red Sea. Instead of focusing primarily on Israeli-linked shipping, the threat now directly challenges the infrastructure supporting one of the world’s largest crude exporters. Even without imposing a complete blockade, the Houthis have repeatedly demonstrated that they need only create sufficient uncertainty for commercial operators, insurers and charterers to reconsider their routing decisions. Recent traffic data already reflects this shift, with Bab el-Mandeb crossings falling by almost 30% in a single day and several tankers diverting immediately after the announcement. For the shipping industry, the consequences extend well beyond individual voyages. Every additional security incident increases insurance premiums, raises bunker consumption through diversions, and prolongs voyage durations. A rerouting around the Cape of Good Hope can add 10 to 14 days to a voyage and approximately $1 million in additional costs per transit, while container operators have already begun adjusting schedules, omitting Saudi port calls and introducing emergency fuel surcharges. Even carriers that recently attempted a cautious return to the Red Sea are once again reassessing their exposure as uncertainty intensifies”.
Source: Xclusiv
“Ultimately, the latest developments demonstrate that the geopolitical risk premium has shifted rather than disappeared. Saudi Arabia successfully reduced its dependence on Hormuz by transforming Yanbu into a major export hub, but this strategy simultaneously increased the strategic importance of the Red Sea. Any disruption around Bab el-Mandeb now carries implications not only for regional shipping but also for global oil supply chains, freight markets and inflationary pressures. For shipowners, charterers and commodity traders alike, freedom of navigation in the Red Sea has once again become one of the shipping industry’s most closely watched strategic variables”, Xclusiv concluded.Nikos Roussanoglou, Hellenic Shipping News Worldwide
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