Saudi Arabia is implementing alternative logistics arrangements to maintain crude oil exports to Asian markets as tensions affect conventional shipping routes through the Strait of Hormuz. Saudi Aramco has begun offering increased volumes of Arab Medium and Arab Heavy crude grades through ship-to-ship transfers conducted at offshore points near Fujairah in the UAE and Sohar in Oman, allowing buyers to receive cargoes without routing their own vessels through the contested strait.
The operational approach involves transferring Saudi crude onto different tankers after the vessels pass through the most dangerous portion of the journey, effectively splitting the voyage into two segments. This arrangement transfers the risk of the Hormuz passage to Aramco, while buyers take possession of their cargo in less contested waters. Asian purchasers, particularly Chinese refiners, benefit from this model given their geographic proximity to the Persian Gulf and their inability to easily avoid the strait through alternative routes.
Data tracking vessel movements indicate that two very large crude carriers carrying approximately 4 million barrels combined were directed toward Chinese ports following transfers off Sohar. These cargoes are scheduled for delivery at Chinese facilities in September, with recipients including Sinopec, demonstrating significant Chinese participation in these arrangements.
The ship-to-ship transfer strategy represents Aramco’s response to complications affecting two major Saudi export pathways. The company recently resumed loading operations at key domestic terminals following a production pause, while simultaneously routing additional volumes westward via the East-West pipeline and Egyptian export terminals to serve European markets. The arrangement reflects Saudi Arabia’s broader strategy to sustain oil shipments to multiple regions despite ongoing disruptions to conventional Gulf trade patterns.
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