The flow of crude oil and oil products through the strategic Bab el-Mandeb Strait has plummeted by over 50% in the first eight months of 2024, according to the U.S. Energy Information Administration, underscoring the significant impact Houthi attacks are having on reshaping global maritime trade, reports gcaptain.
Focal point
This crucial chokepoint, located at the southern entrance of the Red Sea, has become a focal point of international concern amid geopolitical tensions that are disrupting one of the world’s most vital shipping routes, which accounts for 15% of global maritime trade volumes.
The group’s targeting profile has since expanded beyond Israel-affiliated ships to include vessels linked to the U.S. and UK, as well as any ship linked to companies with a history of calling at Israeli ports.
According to Vortexa data, oil trade through the Bab el-Mandeb Strait has plummeted to an average of 4.0 million barrels per day (b/d) in 2024 through August, a stark contrast to the 8.7 million b/d recorded in 2023.
Security situation and continued attacks
Due to the ongoing security situation and continued attacks on ships including the near-sinking of the MT Sounion carrying one million gallons of oil, vessels are likely to largely continue to avoid the typical Suez Canal route for the foreseeable future.
While the Bab el-Mandeb crisis unfolds, it’s worth noting that the Strait of Hormuz remains the world’s most crucial oil chokepoint. In 2023, it facilitated the flow of 20.9 million b/d, equivalent to about 20% of global petroleum liquids consumption, as well as one-fifth of the global liquefied natural gas (LNG) trade.
As tensions in the region continue, the shipping industry and global energy consumers alike will be closely watching for any signs of resolution or further escalation in this critical maritime region.
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Source: Gcaptain
