Gulf of Oman Ship-to-Ship Oil Transfers Hit Record 7.2m b/d as Saudi Exports Reroute

Record Gulf of Oman Ship-to-Ship Volumes and the Saudi Export Shift

Average daily ship-to-ship transfers of liquid hydrocarbons in the Gulf of Oman reached a record 7.2 million barrels per day in early September, according to analytics firm Kpler. Crude oil and gas condensate account for 6.9 million barrels per day of that volume. The jump reflects Saudi Arabia's use of ship-to-ship operations as an alternative export route after a drone attack damaged the East-West pipeline, one of the kingdom's key overland oil corridors.

The scale of the shift is dramatic. Since the start of the US-Iran conflict, ship-to-ship transfers have averaged 3.7 million barrels per day, compared with roughly 160,000 barrels per day in 2025. Unofficial data indicate that the ports of Fujairah in the UAE and Sohar in Oman — the region's main ship-to-ship hubs — are being used at or near full capacity.

The rerouting is already changing tanker economics. Windward data cited by Interfax show the cost of chartering a very large crude carrier to load in the Persian Gulf and pass through the Strait of Hormuz hit a record above $1 million per day this month. That works out to about $26 per barrel, or roughly a quarter of the current market price of oil, compared with a normal freight share of 1–3%. Since the pipeline attack, 12 very large crude carriers have left Hormuz carrying 24 million barrels from Ras Tanura, Saudi Arabia's main Gulf loading terminal.

Shipping patterns show a second security-driven detour. Facing Houthi attacks, Saudi-flagged vessels are avoiding the Bab el-Mandeb strait and sailing around the Cape of Good Hope; Windward reports more than 12 Saudi ships have taken the longer route, adding about $1 million in cost per voyage. Kpler warns that if exports shift further toward less efficient ship-to-ship locations, maintaining supply volumes would require a disproportionate increase in VLCC tonnage because longer distances and extra cargo-handling steps reduce vessel efficiency.

How the Middle East Tanker Rerouting Is Reshaping Crude Logistics

Why Saudi Arabia Is Leaning on Gulf of Oman STS Transfers

Saudi Arabia's need for ship-to-ship capacity follows damage to the East-West pipeline, which has closed off a normal overland route for crude heading westward. Instead, the kingdom is moving cargoes from Ras Tanura through Hormuz toward Fujairah and Sohar, where volumes are transferred between tankers. Kpler's comparison with about 160,000 barrels per day of ship-to-ship activity in 2025 underlines that this is an emergency workaround rather than a routine trading pattern.

The Fujairah-Sohar Capacity Constraint

Unofficial reports show both ship-to-ship hubs are fully or almost fully used. That means the current record of 7.2 million barrels per day is already close to the physical ceiling for the two main locations. Any additional volume must move to alternative sites with longer approaches and extra cargo-handling requirements. The result is lower vessel productivity, which is why Kpler argues that maintaining deliveries would require a disproportionate increase in VLCC tonnage.

The $26-a-Barrel Freight Shock

A VLCC freight rate above $1 million per day for Persian Gulf loadings is historically extreme. At $26 per barrel, shipping accounts for about a quarter of the oil price, compared with a typical 1–3%. This is a security and inefficiency premium rather than an ordinary market fluctuation. The combination of fuller STS hubs, longer voyages and security diversions reduces effective tanker supply and forces buyers to absorb higher delivered costs or reconsider marginal cargoes.

Bab el-Mandeb Avoidance and the Cape Route Premium

Saudi-flagged vessels have begun avoiding Bab el-Mandeb because of Houthi attacks and are sailing around the Cape of Good Hope instead. More than 12 Saudi ships have taken the longer route, adding about $1 million per voyage. That extra distance also matters for fleet supply: vessels on the Cape route are unavailable for return voyages for weeks longer, tightening tonnage availability and reinforcing the elevated VLCC rates now being reported.

What the Record VLCC Freight Means for Oil and Shipping Teams

For energy traders, charterers and terminal operators, the numbers imply specific planning changes:

• Reprice any Persian Gulf loading that moves through Hormuz. Windward's reported VLCC rate above $1 million a day, or about $26 per barrel, compares with a normal freight share of 1–3% of the oil price; spot and term quotes for Saudi barrels should reflect that new cost baseline.
• Assume Fujairah and Sohar STS windows are effectively full. With unofficial data pointing to full or near-full utilisation, cargo planners should not rely on last-minute ship-to-ship slots at either hub and should book alternatives even if they involve longer approaches.
• Model Bab el-Mandeb avoidance into Red Sea and westbound Arabian Gulf shipments. Windward counts more than 12 Saudi ships sailing around the Cape of Good Hope at roughly $1 million per voyage; routing plans for Saudi-flagged or Saudi-origin cargo should compare the contested strait against the longer Cape route.
• For tanker owners and operators, the same constraint is a commercial opportunity. Record VLCC earnings and Kpler's warning that higher export volumes would require a disproportionate increase in VLCC tonnage suggest available vessels can command a premium, provided they can enter the affected Persian Gulf and Gulf of Oman trades.