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Most tankers laden with fuel from a Reliance Industries refinery in western India have been diverted to the Cape of Good Hope to avoid the Red Sea due to the increased risk of attack by Yemen’s Houthis, according to shipping sources and ship tracking data. It is sailing via.
Despite the Suez Canal being the shortest route between Asia and Europe, the world’s fuel producers are shunning the Red Sea around Africa to avoid attacks by the Iran-aligned Houthis.
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According to shipping sources, in the charterparty, Reliance requires tanker owners to either travel through the Red Sea, a vital route for East-West trade, or via the Cape of Good Hope to safely transport fuel to buyers. It is said that it offers the flexibility of doing things.
Officials say most tanker owners are now choosing the Cape of Good Hope route.
Reliance, which operates the world’s largest refining complex, primarily supplies diesel and jet fuel to Europe on a delivery basis.
At least eight tankers have used the Cape of Good Hope route to supply jet fuel and diesel to Europe since mid-February, according to LSEG data.
Tankers included Hafina Yangtze, Dimitri, Sabrina Glory, Alisarcos, Hi Prosperticus, Atalantic Gold, Marlin La Plata and Neutron Sound.
Some shipping companies are directing their ships to take longer, more expensive routes to southern Africa, but in rare cases tanker owners also use the traditional Red Sea route.
Reliance did not respond to a Reuters email seeking comment.
Reliance’s two refineries in Jamnagar in western Gujarat have a combined capacity of about 1.4 million barrels of oil per day.
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