Ships Operate Covertly with Transponders Off as Middle East Oil Exports Continue

Although visible shipping activity through the Strait of Hormuz has dropped dramatically, oil-producing countries in the Middle East continue to export crude oil. A Reuters report said the supply is being maintained through tanker movements with automatic identification system (AIS) tracking switched off, or with transponders turned off.

According to data from ship-tracking company Kpler, open shipping activity through the Strait of Hormuz has declined significantly compared with previous levels due to the conflict and the recent situation. Only 17 cargo vessels passed through the strait over the last weekend, compared with 37 in the previous week and a pre-war daily average of 125 vessels.

However, market analysts and critics say the actual picture is not clear because of reliance solely on satellite tracking data. Many vessels are currently using a southern route off the coast of Oman while keeping their tracking devices switched off. As a result, oil transfers from one vessel to another at sea, known as “ship-to-ship transfers,” are not being detected by conventional tracking systems.

The report cited the example of a very large crude carrier (VLCC) named Pinios, which transferred around 2 million barrels of Iraqi crude oil to another vessel named New Constant off Fujairah, outside the Strait of Hormuz. The latter vessel subsequently departed for China.

According to statistics, around 42 million barrels of oil were transported through the Strait of Hormuz in a single week in mid-September by 22 covert and visible tankers. Around half of the volume came from Saudi Arabia and 35 percent from Iraq. Experts say this strategy of avoiding tracking is playing a major role in keeping the Middle East’s oil supply chain operational.

Source: Gulf News