Saudi Bahri Charters Tankers to Move Oil from Yanbu amid Strait of Hormuz Disruption

Saudi Arabia’s national shipping company has chartered several large oil tankers at record rates as the kingdom moves to redirect crude exports through the Red Sea while traffic through the Strait of Hormuz remains severely disrupted, according to Bloomberg.

The National Shipping Company of Saudi Arabia, known as Bahri, has recently chartered at least six Very Large Crude Carriers (VLCCs) to transport oil shipments from the western port of Yanbu, according to shipping fixtures and market sources.

Shipbrokers and vessel owners said the company’s chartering activity could extend beyond this number, with additional deals expected to emerge in the coming days.

Saudi Arabia is accelerating efforts to reroute crude shipments through pipelines to the Red Sea as exports through the Strait of Hormuz remain effectively halted due to the ongoing regional conflict.

The disruption in the strategic waterway, which typically handles roughly one-fifth of the world’s seaborne oil supply, has pushed global crude prices above $100 per barrel multiple times this week, while tanker charter rates have surged to unprecedented levels.

Bahri said it continues to manage its operations in line with established safety and operational protocols while closely monitoring regional developments, adding that it could not comment on specific commercial matters.

Vessel tracking data compiled by Bloomberg shows a growing fleet of tankers sailing toward Yanbu to load Saudi crude. At least 24 vessels stretching from Singapore to the Red Sea are currently heading to the port, though the charterers of many of the ships have not yet been publicly identified.

Industry sources said several of Bahri’s charters were agreed at around 450 points on the Worldscale industry benchmark, equivalent to daily rates exceeding $450,000. Before the conflict erupted, standard rates in the sector were closer to $300,000 per day.

Earlier this week, the chief executive of Saudi Aramco said a cross-country pipeline transporting oil across the kingdom could reach full operational capacity within days. The pipeline runs roughly 1,200 kilometers (746 miles) from eastern oil fields to the Red Sea.

The line has a capacity of around 7 million barrels per day, although roughly 2 million barrels are allocated to supply domestic refineries within Saudi Arabia.

While redirecting shipments through the Red Sea will absorb a significant share of the kingdom’s exports, analysts note that the alternative route may not fully replace volumes normally shipped through the Strait of Hormuz.

Bahri had also chartered at least five tankers before the outbreak of the conflict, and tracking data suggests some of those vessels may also be heading toward Yanbu to load Saudi crude in the coming days.