The Houthis took control of the Galaxy ship in the Red Sea last November (Reuters)

Shipping industry sources and ship tracking data said that most fuel tankers coming from the world's largest refining complex, run by Reliance Industries of India, are sailing through the Cape of Good Hope, avoiding passage through the Red Sea, which is witnessing military tension.

For its part, the German Shipowners Association announced that diverting navigation from the Red Sea would cost each ship an additional million dollars.

The Yemeni Houthi group's attacks on Israeli, American, and British ships prompted many shipping companies to divert their ships south around Africa, even though the Red Sea and the Suez Canal are the shortest route between Asia and Europe.

Sources in the shipping sector said that Reliance offers in leasing contracts with tanker owners the flexibility to sail via any route, but they added that most owners choose the route around Africa.

Data from the London Stock Exchange Group (LSEG) showed that at least 8 tankers since mid-February have taken the Cape of Good Hope route to supply Europe with jet fuel and diesel.

It is noteworthy that all tankers carrying fuel from Reliance Industries were passing through the Red Sea.

An additional million dollars

In a related context, the German Shipowners Association announced on Tuesday that diverting navigation from the Red Sea and taking the Cape of Good Hope route would cost each ship an additional sum of one million dollars.

Commenting on the geopolitical situation, the Shipping Watch website quoted the association as saying, “Current diversions to avoid the Red Sea cost operators $1 million per round.”

Since last November, the majority of international shipping companies have changed their destinations away from the Red Sea, taking the Cape of Good Hope route, especially those flights linked to Israel, the United States, and Britain.

The German merchant fleet consists of 1,800 ships with a total tonnage of 47 million tons, making it the seventh largest shipping country in the world.

Germany is the largest operator of container ships with a capacity of 29 million tons.

Earlier this month, the International Monetary Fund announced that the volume of trade in the Suez Canal declined by 50% during the first two months of 2024 as a result of the attacks in the Red Sea, noting that international trade was disrupted in the past few months as a result of disturbances in the most important maritime trade route.

He added that some maritime transport companies changed their route from the Red Sea and the Suez Canal towards the Cape of Good Hope, which led to an increase in delivery times by an average of 10 days or more, while the increase through the Cape of Good Hope was estimated at a rate of 74%.

In solidarity with the Gaza Strip, which is facing a devastating Israeli war with American support, the Houthis target, with missiles and drones, Israeli cargo ships or those linked to them in the Red Sea, stressing their determination to continue their operations until the war on the Strip ends.

Since the beginning of this year, an American-led coalition has launched raids that it says target Houthi sites in various regions of Yemen, in response to its attacks in the Red Sea, which was met with a response from the group from time to time.

With the intervention of Washington and London and the tension taking an escalating turn, last January, the Houthis announced that all American and British ships were among their military targets.

Source: Al Jazeera + agencies