On September 13, the Japan Ship Owners Association warned that the shipping time of oil shipments from Saudi Arabia to Asia is at risk of increasing 2.5 times, to about 100 days for a round trip in case the Bab al Mandab strait is blocked.
Usually, the traditional sea route through the Strait of Hormuz to bring oil from the Middle East to Asia only takes about 40 days back and forth. The alternative route through the Bab al Mandab Strait also records equivalent time, ranging from 40 to 50 days.
However, maritime transport through the Strait of Hormuz has now been disrupted due to the impact of military tensions between the US and Iran that broke out from the end of February.
In the Red Sea hotspot, the Houthi forces in Yemen have also just announced that they have taken control of the strategic Bab al Mandab strait, raising deep concern about the risk of the vital sea route at the gateway to the Red Sea being completely cut off.
In the worst-case scenario when the situation in both the Straits of Hormuz and Bab al Mandab continues to escalate tensions, oil tankers will be forced to choose to circle through the Suez Canal and Cape of Good Hope in the southernmost part of Africa.
This ring road not only extends travel time to nearly 100 days but also directly pushes up sea transport costs, creating greater pressure on energy consumption markets in Asia.
