Japanese oil tankers have returned to the waters of the Middle East to load crude oil for Japanese refineries, but none of these vessels are entering the Persian Gulf through the Strait of Hormuz. Instead, an increasing number of Japanese-owned or bound vessels have returned to the waters of the Gulf of Oman to participate in ship-to-ship (STS) transfers off the coasts of Oman or Fujairah, more than since the onset of the Iran war.
Return of Vessels and STS Transfers
For over seven months, Japan-related vessels that had avoided transit in the Middle East were loading their cargoes in STS transfers off the coasts of India or Southeast Asia. Vessels that had previously been trapped in the Strait of Hormuz managed to exit the Persian Gulf during a three-week ceasefire period in Tir and Mordad. Now, some Japan-related vessels have returned to the Middle East but still refrain from entering the Persian Gulf via Hormuz.
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Increase in Transfers and Caution in Middle Eastern Travels
So far this month, Japanese owners and refineries have transferred a higher volume of crude oil in transfers outside the Middle East compared to similar transfers on the route to Japan. The first STS transfer in the Middle East that included cargoes bound for Japan took place in August, and these transfers have steadily increased since then. However, Japanese refineries and ship owners remain very cautious in their Middle Eastern travels, which is why they do not attempt transit from the Strait of Hormuz to the Persian Gulf. They seem inclined to load more cargoes from the Middle East and optimize transportation costs in these STS transfers.
Mitsui O.S.K. Lines, the world's largest shipping operator, announced last month that it expects disruptions in the Strait of Hormuz to continue for a longer period than previously anticipated, with no signs of normalization by the end of the year.
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