Indian Refiner Takes Longer Route for European Deliveries

Reliance Industries, a major Indian oil refiner, is shipping most of its fuel for Europe around Africa’s Cape of Good Hope instead of through the Red Sea. This detour is due to concerns about attacks by Yemen’s Houthi rebels, according to shipping industry sources and tracking data.

The Red Sea is a crucial route for transporting goods between Asia and Europe, with the Suez Canal offering a much shorter passage than the Cape of Good Hope. However, recent Houthi activity has heightened security risks in the Red Sea, prompting many fuel producers to avoid it.

Reliance offers tanker owners the option to choose between the Red Sea or the Cape of Good Hope route in their contracts. However, most shipping companies are opting for the longer but safer route around Africa.

Reliance, which operates the world’s largest refining complex, primarily supplies Europe with diesel and jet fuel on a delivered basis. Data shows that at least eight tankers carrying Reliance fuel for Europe have used the Cape of Good Hope route since mid-February.

While some shipping companies avoid the Red Sea altogether, there are occasional instances where tankers still use the traditional route. Reliance has not yet commented on this shift in shipping routes.