Shipping risks in the Red Sea continue to have wider effects, driving a major shift in Saudi crude transportation routes. Tankers operated by Sinokor, Dynacom, DHT Management, and other tanker operators have recently made frequent voyages between Yanbu, Saudi Arabia, and Ain Sukhna, Egypt. After arriving in Egypt, the crude is transported north through the SUMED pipeline to the Mediterranean port of Sidi Kerir, where it is reloaded onto tankers for long-haul exports. This has established a regular alternative corridor that avoids the Bab el-Mandeb, changing the previous direct-shipping model in the Red Sea.

Key Highlights 

• Alternative route: Saudi crude is moving via Yanbu, Ain Sukhna, the SUMED pipeline, and Sidi Kerir. 

• Maritime blockade: The Houthis announced a blockade of Saudi shipping routes on July 20, sharply increasing the risks of southbound voyages through the Bab el-Mandeb. 

• Crude transferred: At least four tankers have made multiple short-haul transfer voyages, carrying more than 16 million barrels of Saudi crude. 

• Higher Sidi Kerir volumes: Saudi Arabia has significantly increased crude exports through Sidi Kerir, making the northbound route a key alternative. 

• Longer transit times to Asia: Transportation times have increased from approximately 20 days to 50–60 days, with schedules and logistics costs rising accordingly.

Why Is Saudi Arabia Adjusting Its Crude Shipping Routes?

Yanbu is a major crude export hub on Saudi Arabia’s west coast and has long handled shipments to Asian markets. The traditional route involved loading at Yanbu, sailing south through the Red Sea and the Bab el-Mandeb, entering the Indian Ocean, and continuing to ports across Asia. It was an established route with shorter transit times and lower transportation costs.

Escalating geopolitical risks in the Red Sea have disrupted this shipping pattern. On July 20, the Houthis announced a maritime blockade against Saudi Arabia and warned that merchant ships and tankers trading with the country could be considered potential targets. This sharply increased the risks of southbound tanker transits through the Bab el-Mandeb, together with war-risk insurance premiums. Regular shipping operations on the route have consequently faced severe disruption, prompting Saudi Arabia to adjust its transportation arrangements.

To maintain stable crude exports and reduce exposure to maritime security risks, Saudi Arabia introduced an alternative system combining short-haul Red Sea shipping, pipeline transportation, and long-haul Mediterranean shipping. Saudi Aramco has also continued to increase crude loadings at Sidi Kerir to offset the export shortfall caused by disruption to the traditional route and maintain crude supplies to international markets.

How Does the New Saudi Crude Route Operate?

The alternative corridor is a combined transportation network connecting several locations while avoiding the high-risk Bab el-Mandeb section. Tankers first load crude at Yanbu and carry it on a short-haul voyage to Ain Sukhna, where it is discharged. The crude then enters Egypt’s SUMED pipeline and is transported north from the Red Sea coast to Sidi Kerir on the Mediterranean. At Sidi Kerir, it is reloaded onto tankers for long-haul exports via the Suez Canal or around the Cape of Good Hope, depending on the destination market.

Vessel-tracking data indicates that the route is now being used regularly. At least four tankers have each completed two or more short-haul voyages between Yanbu and Ain Sukhna, transferring more than 16 million barrels of crude in total. The continued involvement of Sinokor, Dynacom, DHT Management, and other tanker operators in these shuttle operations indicates that the northbound route is no longer only a temporary contingency arrangement and is now being used as a regular alternative for Saudi crude exports.

Asian Buyers Face Longer Transit Times and Higher Costs

Although the alternative route avoids the high-risk Bab el-Mandeb section, it significantly reduces transportation efficiency and increases costs for Asian crude importers. Japanese refiner Idemitsu has publicly confirmed that it has switched to alternative routes for Saudi crude purchases instead of using the traditional direct Red Sea route.

The traditional direct voyage through the Red Sea to Asia took approximately 20 days. Under the new combined transportation arrangement, including longer ocean routing, the overall transit time has increased to 50–60 days. The longer journey reduces vessel turnaround efficiency and increases fuel consumption, ocean freight costs, war-risk insurance premiums, and the overall cost of crude imports into Asia.

Key Implications and Recommended Actions for Freight Forwarders and Trading Companies

Red Sea crude transportation is shifting from a direct seaborne model to a combined network involving shipping, pipeline transfers, and connections between multiple ports. This change directly affects freight forwarders, crude trading companies, and Asian buyers.

First, schedule planning must be revised. Transfers across multiple locations and longer routing have made overall transit times less predictable. Companies should replace the previous 20-day direct-voyage assumption with a 50–60-day planning window and allow sufficient logistics buffers to reduce the risk of late delivery.

Second, the number of operational stages has increased. Short-haul discharge, pipeline transportation, and reloading create additional risks involving cargo coordination, documentation, and inspection-related delays. Operating arrangements at each stage should therefore be confirmed in advance.

Third, cost calculations need to be updated. Additional fuel, insurance, port handling, and related charges are increasing, requiring companies to revise their quotations and cost structures promptly.

The industry should continue monitoring conditions in the Bab el-Mandeb, throughput on the SUMED pipeline, operating capacity at Sidi Kerir, and changes in capacity and freight rates on routes via the Suez Canal and the Cape of Good Hope. Saudi crude logistics arrangements should be adjusted as these conditions change.

Sources 

Reuters, Bloomberg, Kpler, Vortexa, and publicly available vessel-tracking information. 

Disclaimer 

This article is provided solely for reference by the international logistics and freight forwarding industry. Routes, schedules, and security conditions may change in response to market and regional developments. Please refer to the latest notices from carriers, ports, and carriers for specific shipping arrangements.