Japan-Bound Tankers from U.S. Increase amid Hormuz Closure

Tokyo, April 28 (Jiji Press)–The number of crude oil tankers sailing to Japan from the United States has shot up amid the effective blockade of the Strait of Hormuz, a key oil transport waterway. As of Thursday, 13 tankers bound for Japan were confirmed to have departed from coastal U.S. areas of the Gulf of Mexico, a key oil loading hub. One of the ships arrived in Japan via the Panama Canal, and the remaining vessels, including those passing by the Cape of Good Hope at the southern tip of Africa, are set to begin arriving next month. The Japanese government considers North America an alternative crude oil supplier other than the Middle East, where fighting between U.S.-Israeli forces and Iran has led to the de facto closure of the Strait of Hormuz. The number of tankers quadrupled from three about a month ago, according to Yutaro Nishi, global analyst at Rakuten Securities Economic Research Institute, who analyzed data from global ship-tracking website MarineTraffic. Of the 13 vessels, three passed through the Panama Canal, an 80-kilometer canal linking the Atlantic and Pacific oceans. The canal charges high tolls and cannot be used by large ships due to its narrow width and shallow depth, but it enables vessels to make the U.S.-Japan journey in about 30 days, compared with about 50 days needed for the Cape of Good Hope route. A tanker carrying 910,000 barrels of U.S. crude oil procured by Cosmo Oil Co., a subsidiary of Japan’s Cosmo Energy Holdings Co., arrived at Tokyo Bay on Sunday after a 35-day trip. A company official said it chose to transport the oil through the Panama Canal to prioritize speed and contribute to a stable domestic oil supply. The other 10 tankers are set to use the Cape of Good Hope route. The first vessel is expected to arrive early in May, and some are seen reaching their destinations in June. “The route is decided based on the needs of the shipper–whether they choose volume over speed, and whether they are willing to pay tolls for speedy delivery,” a shipping industry source said. “The crude oil tankers from the United States are believed to be carrying (oil) procured with spot contracts rather than long-term contracts,” Nishi said. “It’s questionable whether Japan can maintain continuous procurement next month and beyond, as it may have to compete for U.S. oil with other Asian countries.” Meanwhile, four tankers that departed from the Middle East but did not pass through the Strait of Hormuz, along with another four tankers carrying oil transshipped in Malaysia, were confirmed to be heading to Japan. Apart from these and the 13 vessels from the United States, Nishi found no other crude oil tankers providing alternative oil supplies to Japan. END [Copyright The Jiji Press, Ltd.]