The supertanker Grand Bonanza, carrying 1.8 million barrels of Abu Dhabi crude for TotalEnergies, has embarked on a roughly 40-day journey around Africa to France, avoiding the Red Sea due to concerns over attacks by Yemen-based Houthi forces. This alternative route is expected to take at least two weeks longer than the traditional route via the Suez Canal and is estimated to cost nearly 80% more, amounting to about $5.7 million.
TotalEnergies’ decision to opt for the longer and costlier route underscores the impact of Houthi attacks on Red Sea shipping, which had initially targeted container shipping but is now affecting global oil trading. The disruption caused by security concerns in the Red Sea region is leading companies to reassess their shipping routes, balancing safety considerations against the additional time and expenses associated with alternative journeys.
As Houthi forces continue to pose a threat to shipping lanes, particularly in the Red Sea, businesses in the oil and shipping industries are navigating challenges to ensure the secure and efficient transport of goods. The situation highlights the broader implications of geopolitical tensions on global trade routes and the strategies companies adopt to mitigate risks.
