A Chinese-chartered supertanker turned back from the Red Sea as Houthi attacks disrupt Saudi crude flows to Asia. Insurers are balking at coverage.
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A Hong Kong-flagged supertanker bound for Saudi Arabia's Red Sea port of Yanbu reversed course just before reaching the Bab el-Mandeb strait, where Houthi attacks have targeted vessels linked to the kingdom.
The empty very large crude carrier New Champion turned around in the Gulf of Aden on Friday after idling near the chokepoint, ship-tracking data show. The vessel had been chartered by a Chinese buyer to load crude at Yanbu, according to shipping fixtures. It is now heading east at roughly 16 knots.
Why the ship turned is unclear. Some marine insurers have stopped offering coverage for vessels calling at Saudi ports because of attack risk, ship and insurance brokers said.
The move exposes a widening economic toll from the Houthi naval blockade and points to growing obstacles for Chinese buyers trying to get Saudi crude. Western-linked vessels have largely avoided the Red Sea for Saudi cargoes since the blockade was announced. China-bound ships, however, had continued loading roughly 520,000 barrels a day from Yanbu this year, Kpler data show. Those flows surged after the Iran war, when Saudi Arabia diverted Persian Gulf crude exports to Yanbu to bypass Iran's Strait of Hormuz blockade.
New Champion appears to be the first Chinese-chartered tanker to turn back from the Red Sea amid the heightened risk. Earlier last week, two Chinese-owned supertankers safely exited the Bab el-Mandeb carrying Saudi cargoes with their transponders on – the first Saudi crude tankers to leave the Red Sea unimpeded since the Houthi blockade began, shipping data show.
Behind them, the laden New Explorer is approaching the chokepoint, while the loaded New Pearl sailed out of Yanbu early Saturday.
Some Western-linked ships and vessels operated by cautious owners have been avoiding the southern Red Sea exit, instead taking the safer but costlier route through the Suez Canal and around Africa to reach Asian buyers.
The Japan-bound cooking-fuel carrier Gas King exited the Red Sea via the Suez Canal on Friday, one of the first to load and leave with Saudi cargo since the Houthis announced their embargo. The ship, which earlier expected to reach Japan in early August, now shows an arrival date in late September, data indicate.
Other tankers with Western links have sailed through the Bab el-Mandeb or approached Yanbu with their transponders off, likely to avoid Houthi tracking.
New Champion, New Explorer and New Pearl are managed by Associated Maritime Co (H.K.) Ltd, according to shipping database Equasis. The Hong Kong-based company did not respond to an emailed request for comment sent outside regular business hours.
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