22 Aug 2024 | 11:09 UTC

EU naval force evacuates Greek crude tanker in Red Sea, new drone attacks reported

Highlights

EU naval force evacuates Greek Suezmax, warns of environmental hazard

Delta tankers planning to move Sounion to a safe destination

Dry bulk carrier damaged by sea drone South of Aden

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A Greek crude tanker adrift in the southern Red Sea was targeted by a sea drone as crew members were evacuated, according to the EU naval force and UK Maritime Trade Operations, as the most destructive attack on Red Sea shipping continued for a second day.

In a statement on X Aug. 22, Eunavor Aspides, the EU military operation in the Red Sea, said it had destroyed an unmanned surface vehicle, otherwise known as a sea drone, on a rescue mission to the Sounion, a ship managed by Greek operator Delta Tankers that was struck by four missiles while carrying Iraqi crude to Greece via the Red Sea.

"Carrying 150,000 tons of crude oil, the MV SOUNION now represents a navigational and environmental hazard. It is essential that everyone in the area exercises caution and refrains from any actions that could lead to a deterioration of the current situation," it said.

The ship's 25 crew members were picked up by a rescue ship after the drone was destroyed and were being transported to safety at the port of Djibouti, according to the EU naval force.

S&P Global Commodities at Sea(opens in a new tab) data showed the Sounion was laden with 1 million barrels of Basrah Heavy crude from Iraq, which it had loaded Aug. 12. The Greek shipping ministry separately confirmed the ship was on a voyage to Agioi Theodoroi, where Motor Oil has a 200,000 b/d refinery.

"The attacks will likely further shut down Red Sea traffic," said Rick Joswick, head of S&P Global Commodity Insights near-term oil research, warning of a "temporary tightening effect" on the broader oil complex as deliveries are delayed and refiners seek prompt backfills. However, an expected oversupply in global crude markets in the coming months could mitigate upside, Joswick said.

Freight rates proved unshaken by the attacks Aug. 22, when Platts, a part of Commodity Insights, assessed freight on the 140,000 mt dirty Arab Gulf - UKC route unchanged on the day at $21.2/mt and down from $21.58/mt Aug. 20.

In a statement Aug. 22, Delta Tankers said plans were in place to move the Sounion to a safer destination, while the UKMTO confirmed at 16:10 UTC that the vessel had been anchored. Delta Tankers had not received reports of pollution as of Aug. 21, a company spokesperson said.

Dry bulk vessel south of Aden damaged by drone

Another vessel south of Aden, Yemen, was also targeted by a sea drone and sustained "minor damage" Aug. 22, according to the UKMTO and Ambrey, after emerging unscathed from five attacks strikes Aug. 21.

The vessel, which sources identified as the bulk carrier SW North Wind I, continues to proceed to its next port of call, with crew members reported safe, according to the UKMTO.

CAS data showed the Panama-flagged vessel is operated by Sea World Management SAM.

The drone-stricken ship had stopped transmitting an AIS signal prior to entering the western Gulf of Aden, Ambrey said Aug. 22, advising merchant shipping to maintain a safe distance from vessels transiting the Red Sea without emitting an identification signal.

Previous attacks

The show of force marks the most destructive attacks on the troubled Red Sea shipping route after recent attempts on the trade lane have failed to inflict damage on passing vessels. Delta Tankers appeared to proceed undeterred despite three attacks on its vessels this month, most recently on the Delta Blue, which emerged unscathed after four attacks (opens in a new tab)Aug. 9.

Previously, the 82,400-dwt Greek-owned bulk carrier Tutor(opens in a new tab) was the last vessel to sink after a drone attack June 12.

UKMTO records and media reports suggest that eight ships have been attacked by the Iran-backed militants in August, though shipping routes have stayed broadly resilient as the majority of vessels continue to sail around the Cape of Good Hope to avoid disruption.

Major energy and shipping companies, including BP, Maersk, QatarEnergy and Frontline, have altered their routes to sail around Africa to avoid Houthi attacks, while the latest IMF PortWatch data showed the average daily ship transits via the Bab al-Mandab Strait stood at 23 in the week ended Aug. 11, down by over a third from a year-ago level of 70.

Shipping sources said that the attacks were yet to support freight rates from the Arab Gulf, but cautioned that the incidents could support prices heading into a period of seasonal demand strength.

"VLCC [rates are] coming off in AG at least, plus [Red Sea] attacks will make owners rather trade in West or go via COGH which will put pressure on opening tonnage," said one broker.


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