Persian Gulf oil producers shift cargo transfers due to congestion near Hormuz
Summary
Persian Gulf oil producers are relocating critical cargo transfer operations farther from the war-affected region, as increasing congestion with tankers outside the Strait of Hormuz is disrupting shipping. This congestion has prompted some operators to opt for direct deliveries to India or to use alternative transfer points, such as the Gulf of Kutch off western India. The ongoing delays, with ship-to-ship transfers from fully laden very large crude carriers taking several days, highlight the operational pressures on the network due to limited transfer capacity.
Analysis
Persian Gulf oil producers: Persian Gulf oil producers are energy-exporting companies and state-linked exporters in the Gulf region that rely on maritime routes, including the Strait of Hormuz, to move crude and other cargoes to international buyers. In the reported development, they are shifting ship-to-ship transfer activity farther from Hormuz because nearby waters have become congested amid war-related disruptions, with the Gulf of Kutch emerging as an alternative transfer location. Shipping disruption: Congestion in the Gulf of Oman ship-to-ship transfer network is pushing some operators toward direct deliveries to India or alternative transfer points near the region. Alternative waypoint: The Gulf of Kutch off western India is being used as an alternative location for transferring Persian Gulf cargoes onto larger vessels. Operational pressure: Ship-to-ship transfers from fully laden very large crude carriers are taking several days, indicating that the expanded shuttle network is straining available transfer capacity.
Categories
macro
Related sources
- https://www.moneyweb.co.za/news/international/tanker-congestion-shunts-vital-oil-transfers-farther-from-hormuz/
- https://smart-lab.ru/mobile/topic/1357889/
- https://www.bloomberg.com/news/videos/2026-10-01/mitchell-hormuz-oil-exports-up-with-shuttle-tankers-use-video
- https://www.lloydslist.com/hot-topics/strait-of-hormuz
- https://www.lloydslist.com/hot-topics/strait-of-hormuz-crisis
- https://www.marinelink.com/news/maritime/strait-of-hormuz
- https://gulfnews.com/world/mena/mid-east-oil-producers-continue-exporting-on-tankers-traveling-with-their-transponders-switched-off-report-1.500683047
- https://tankermap.com/analytics/straits/hormuz
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- https://gulfnews.com/amp/story/business%2Fenergy%2Fhormuz-tanker-traffic-shows-signs-of-recovery-but-gulf-oil-flows-remain-far-below-normal-1.500674751
- https://fortune.com/2026/08/16/mideast-oil-flows-global-crude-prices-hormuz-iran-dark-tanker-shuttles/
- https://www.newsweek.com/other-routes-how-shipping-circumventing-strait-hormuz-war-zone-12198665
- https://straits.live/report
- https://oilprice.com/Energy/Crude-Oil/A-4-Million-Bpd-Shadow-Oil-Highway-Is-Running-Through-Hormuz.amp.html
- https://www.lloydslist.com/markets/tankers-and-gas