Logistics intelligence firms are observing tankers turning off transponders near Israel to covertly transport and unload cargo.
- Key ports, such as Haifa and Ashdod, which handle oil, fertilizers, and chemicals, have come under rocket attacks during the Israel-Hamas conflict.
Stealthy Shipping
The Port of Ashkelon, Israel’s largest oil-importing port, is closed due to the Israel-Hamas conflict. Israel has taken measures to safeguard its oil port and pipeline operations to prevent an energy crisis.
“There’s been a big drop-off in tanker AIS signaling Israel as their destination,” said Homayoun Falakshahi, senior oil analyst at global trade intelligence firm Kpler. “In fact, we don’t see any crude-carrying tankers doing so at the moment.”
Oil tankers in the Red Sea are turning off their tracking transponders to move undetected, particularly with rocket attacks reported at ports like Ashdod and Eilat in Israel.
“Vessels calling Israel are advised to apply ballistic protection measures,” global maritime risk management firm Ambrey wrote in a note to clients on Saturday after a series of rocket sirens at the Port of Ashdod. “In the event of a siren, crew members are advised to take shelter.”
Covert Operations
Falakshahi informs CNBC that ships are deactivating tracking systems both during transit and while unloading in ports. The tanker Valfoglia discharged cargo at the Port of Haifa on October 24 with its AIS signal turned off.
“This is unusual behavior and delays the information of a discharge,” Falakshahi said.
- Port of Ashdod is vital for ICL Group, facing delays in chemical exports due to war and staffing shortages.
- “Rockets are regularly fired at the Port of Ashdod in southern Israel, the country’s second biggest port,” said Mirko Woitzik, global director at Everstream.
- Vessel queues dropped to below five daily, with Evergreen diverting a ship, impacting Israel’s food supply. “This suggests that container lines are avoiding the Port of Ashdod, and potentially relying more on the Port of Haifa instead,” Woitzik said.
Strategic Port Shifts
Recent rocket attacks have led tankers to change their ports for docking and unloading cargo, such as the Seaviolet switching to the Port of Eilat. It’s reported that the Eilat-Ashkelon pipeline flow has been reversed to transport oil to Ashkelon, then on to Ashdod and Haifa refineries.
“If this route is continued going forward, Israel could build its crude stocks again and feed its domestic refineries again, therefore preventing a potential energy crisis in the country, which has inventories filled up to levels covering up to about 50 days of domestic demand right now.”
Rocket strikes on Eilat suggest an evolution in Hamas’ tactics, raising concerns about global oil supply disruptions. Despite fluctuations, oil prices reflect the perceived risks, with Israel’s ground offensive in Gaza adding to concerns.
December Contracts
Andy Lipow, president of Lipow Oil Associates, emphasizes Israel’s reliance on crude oil imports for its refineries, particularly monitoring the Ports of Haifa and Ashdod.
Additionally, he keeps an eye on crude oil export terminals in the Strait of Hormuz region, including Ras Tanura, Basra, and Mina al-Ahmadi. The Port of Fujairah outside the Strait of Hormuz is also of interest as a significant vessel bunkering location.
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Source: CNBC
