Shipments of Indian diesel to Europe have decreased significantly and now are at the lowest in the last 2 years. The presence of Houthi pirates in the Red Sea is disrupting international trade and the turmoil has forced ships to take new and longer routes, which drives the freight costs higher.
According to data given by Vortex Ltd, the export of fuel from India to Europe decreased significantly this month to a mere 18,000 barrels per day. This marks a 90% plunge in the barrels per day exported, as compared to the first month of 2024. The main reason for this is the high freight costs in the region.
Ships entering the Red Sea region are being forced by the Houthis to travel around South Africa’s Cape of Good Hope. This increases the journey’s distance and costs. The only option for the ships is to use the Suez Canal and take the risk of being attacked by the Houthi pirates. This has also increased the price of crude oil from the Middle East as the ships are being attacked constantly, raising the price up.Â
Although India is not initiating any export of diesel from domestic ships, foreign vessels like Marlin Sicily and Marlin La Plata recently loaded diesel barrels from India and are headed to Rotterdam. However, Indian diesel exports to Asia have increased significantly in the last 2 weeks. Many cargo vessels like Orange Victoria and Peace Victoria are making their way to East Asia, with Indian diesel onboard.
