Chinese Oil Tankers Turn Back as Hormuz Risks Mount

Two Chinese very large crude carriers have reversed course in the Strait of Hormuz, idling there, according to Bloomberg reporting on ship-tracking data. One vessel, named Sea V, had loaded crude oil in Iraq before turning back and now sits idle in the waterway. The Sea V is under a Hong Kong flag and boasts a Chinese crew. Another tanker, Hestia, also under a Hong Kong flag, entered the Persian Gulf earlier in the week, made its way through Hormuz, but then made a U-turn and is currently situated in the Gulf of Oman.

This information comes from the latest data from Marine Traffic. Earlier this week, Reuters had reported that two Chinese shipping giants had diverted their vessels from the Strait of Hormuz and Bab el-Mandeb due to the heightened risk of drone and missile strikes in the region. State-owned companies COSCO Shipping Energy Transportation and China Merchants Energy Shipping had ceased sending ships to the two straits since July.

Reuters noted that together, these companies operate over 100 very large crude carriers, handling approximately half of China's oil imports from the Middle East. One unnamed Chinese shipping executive told Reuters that the tankers are still active, but are navigating longer voyages and experiencing longer waits due to increased uncertainty.

Additionally, Kpler data revealed that Chinese tanker operators are conducting ship-to-ship transfers in the Gulf of Oman, outside the Strait of Hormuz, at an average rate of 600,000 barrels daily during June and July, Reuters reported this week. Another unnamed Chinese shipping executive added that they are steering clear of the two straits but are sending vessels to new ship-to-ship points outside the Gulf, which present low risk and good profits.