* Ships carrying Saudi crude for China and India heading to
Suez Canal
* U-turns suggest more potential disruption to a major
shipping route
* Yemen's Houthis declared a blockade against Saudi Arabia
on Monday
By Florence Tan and Nidhi Verma
SINGAPORE/NEW DELHI, July 21 (Reuters) - Three oil tankers
loaded with Saudi crude for China and India made U-turns in the
Red Sea on Tuesday, heading towards the Suez Canal rather than
braving the Yemeni coast at the sea's mouth following a warning
from Yemen's Iran-aligned Houthi militia.
The changes in direction by the ships, the Xin Long Yang, the
Rodos and the Amazon, suggest a second potential disruption to a
major shipping route that could compound the shortfall in global
energy markets caused by the closure of the Strait of Hormuz.
The Houthis on Monday declared a naval blockade against
Saudi Arabia, opening a potential new front in the U.S.-Israeli
war with Iran and raising the threat to global energy supplies
and trade beyond the Gulf.
The group, in an email sent to shipping companies, warned them
not to load or discharge cargo at Saudi Arabian ports and said
such activity may result in being targeted "in any location".
The Houthis control northern Yemen, including the coast of
the Bab el-Mandeb, the strait at the mouth of the Red Sea. Since
the Strait of Hormuz controlling access to the Gulf has been
blocked during the war, Saudi Arabia's Red Sea port of Yanbu has
become the main alternative route for Middle East oil, allowing
exports of millions of barrels per day.
War risk insurance costs have already risen in the past 24 hours
with risk assessments for Saudi ports being re-evaluated,
insurance industry sources said on Tuesday.
"Vessels calling at Saudi Arabian ports are advised to
reconsider transiting the Red Sea and to consider implementing
enhanced mitigation measures," British maritime security company
Ambrey said, adding that it assessed vessels calling at Saudi
Arabian ports "were at high risk".
U-TURNS AT SEA
The Xin Long Yang, a Very Large Crude Carrier which
completed the loading of 2 million barrels of Saudi crude at
Yanbu on Monday, was originally heading to exit the Red Sea to
go to China, but made a U-turn and was heading to Suez instead,
shipping data showed.
The smaller tanker Rodos, which had loaded about 700,000 barrels
of Saudi crude for India, also made a U-turn for Suez on
Tuesday, according to the data. The Suezmax tanker Amazon, which
loaded crude on Tuesday for India, also headed to Suez. The
tankers switched off their transponders on Tuesday.
Dynacom Tankers Management, which manages Rodos and Amazon, and
Cosco Shipping, manager of Xin Long Yang, did not immediately
respond to requests for comment.
Another VLCC, New Prime, which was scheduled to arrive at
Yanbu later this week to load crude, has also turned back off
Oman before entering the Red Sea. Its manager Associated
Maritime Co HK did not respond to a request for comment.
Three shipping sources said Yanbu was still operating to load
oil onto ships that were already in the Red Sea or arriving via
Suez. Ship tracking data showed a tanker, the Olympic Luck,
which had passed into the Red Sea through Suez, was still
heading for Yanbu, as were several ships that were already close
by. However, most tankers sailing in the Red Sea or loading at
Yanbu port have switched off their transponders since Tuesday.
But forcing tankers to use the Suez Canal rather than exit
the Red Sea through the Bab el-Mandeb would add weeks to
shipments to customers in Asia, requiring sailing through the
Mediterranean and around Africa.
"While an actual blockade seems unlikely given the resources
required for such an undertaking, a step-up in hostilities could
see Houthis targeting Saudi-associated ships transiting the Bab
el-Mandeb strait," ship broker Clarksons said in a note on
Tuesday.
In recent months on average 10 crude tankers have sailed
through the Bab el-Mandeb daily.
"However, should Houthis affect traffic through the region,
we could see a reshuffling of crude cargoes in which Yanbu
volumes are increasingly directed towards Europe."
Fully laden VLCCs transiting the canal must first unload
some of their oil, which can bypass the canal by being pumped
through the SUMED pipeline to the Mediterranean.