Japan Relies on Offshore Ship-to-Ship Transfers to Sustain Crude Oil Supply, Highlighting Energy Challenges from Escalating Middle East Conflict

Deep News04-07

Japan is ensuring its crude oil supply through ship-to-ship transfers of petroleum far from the Middle East, keeping its tankers away from conflict zones that pose excessive risks to crews and vessels. According to vessel tracking data, a very large crude carrier named Kisogawa is heading to Hokkaido after receiving approximately 1.2 million barrels of Murban crude oil on Sunday from the ship Rio De Janeiro Energy in waters near Linggi, off the west coast of Malaysia. This operation occurred just one week after the previous transfer of Murban crude at sea, with the current cargo also en route to Japan.

The Kisogawa, depicted in white, took on the Murban crude destined for Japan from the Rio De Janeiro Energy near Malaysia's west coast over the past weekend. Such crude transfer operations are unusual for Japanese shipping firms, underscoring the growing challenge Japan faces: maintaining stable crude imports from the Middle East while avoiding direct involvement in conflict-ridden areas. Tokyo officials have previously stated they are in discussions with Iran and exploring alternative procurement options, emphasizing the necessity of ensuring the safety of ships and crews. Major Japanese shipowners have already suspended routes passing through the Persian Gulf and instructed vessels to remain in safe waters.

Rahul Kapoor, Global Head of Shipping and Metals at S&P Global Commodity Insights, commented, "Japan requires crude oil, and buyers are scrambling to secure supplies. This indicates supply chain disruptions, and offshore transfers help alleviate the issue." Vessel tracking data reveal that since the conflict escalated, only two Japanese tankers have loaded crude directly from the Middle East, both on March 1. During a brief conflict last year, Japanese shipowners were among the first to direct their fleets to avoid the entire Persian Gulf region.

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