Greek-managed tankers reroute Russian oil via Africa to skirt Red Sea threats
Several Greek-managed tankers transporting Russian oil to Asia are increasingly avoiding the Red Sea, opting instead for the longer route around Africa, due to escalating security threats from Houthi attacks, three oil traders and LSEG shipping data show.
The rerouting follows a deadly drone and speedboat assault earlier this month on a Liberian-flagged, Greek-operated bulk carrier off Yemen, which killed four seafarers. The Iran-backed Houthi terror group also sank another vessel in July, ending a brief period of calm in the region.
The Red Sea, a vital artery for global oil and commodity trade, has seen traffic plummet since Houthi attacks began in November 2023. The group claims the assaults are in solidarity with Palestinians amid the Gaza conflict.
While most Western shipowners abandoned the Suez Canal route last year, Russian oil shipments had largely continued through the region, benefiting from Moscow's close ties with Iran, which backs the Houthis.
Greek shipping companies have recently become active in Russia's Urals oil market as the price of the grade dropped below the Western price cap of $60 per barrel, allowing them to provide transport and insurance services while complying with sanctions under the Group of Seven price cap terms.
LSEG data shows that vessels such as the Minerva Elpida, Minerva Vera and Nissos Ios, carrying a total 300,000 tonnes of Russian Urals crude, departed in late June and early July and are now en route to India via the Cape of Good Hope.
None of the ships' Greek managers replied to repeated Reuters' requests for comments via email.
Reuters was not able to establish who was behind the decision to change the route.
These tankers are part of fleets whose sister ships have docked at Israeli ports since October 2023, which Norwegian marine insurer Gard says may make them targets for Houthi forces.
Ships typically have protection and indemnity (PI) insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage. Separate war risk insurance is required when going into high-risk areas such as the Red Sea.
The Nissos Ios, a mid-sized Suezmax tanker under the Marshall Islands flag, which can carry one million barrels, is managed by Kyklades Maritime and insured by Gard for protection and indemnity. The Minerva Elpida, a Greek-flagged Aframax capable of carrying 0.7 million barrels and the Minerva Vera, a Suezmax flagged in Malta, are both managed by Minerva Marine and insured by Britain's NorthStandard.
Gard said it did not provide the war risk cover for the Nissos Ios and declined to comment on Red Sea security. It was not clear which companies provided war-risk insurance for the three vessels.
Northstandard said PI clubs would not provide routing recommendations to shipowners nor would war risk underwriters, while, "the decision to sail via the Cape will have been taken jointly by owners and charterers".
It usually takes twice as long to sail via southern Africa's Cape than through the Red Sea to Europe, which is typically 15 days.
War risk premiums for Red Sea voyages have more than doubled since the Houthi attacks, adding hundreds of thousands of dollars in extra costs for every seven day voyage.
(Reporting by Reuters in MOSCOW and Jonathan Saul in LONDON, Editing by Louise Heavens)
