Maritime Oil & Gas Report for July 2024

FD&A Department
Aug 2, 2024
3 min read

MBIEC‑style Oil & Gas Report for July 1–31, 2024, specifically highlighting maritime trade lanes, regulatory updates, and sector responses:

1. 🛡️ Red Sea & Gulf of Aden – Houthi Phase 5 Escalation

Houthis announce Phase 5In mid‑July, the Houthis declared Phase 5 of their maritime campaign, signaling a further intensification following the “Yafa” drone launch on July 19 safety4sea.com +4marineregulations.news +4reuters.com +4argusmedia.com +15washingtoninstitute.org +15navytimes.com +15.
Notable vessel attacks
- July 1: MSC Unific VI struck by ballistic and cruise missiles in the Arabian Sea; no casualties imo.org +14en.wikipedia.org +14navytimes.com +14.
- July 10: Houthi drones, missiles hit MT Bentley I and MT Chios Lion in the Red Sea; both ships escaped serious harm en.wikipedia.org +15navytimes.com +15reuters.com +15.
- Late July: Shipping drones and USV threats rose; U.S. and UK strikes along the coast destroyed several UAVs/USVs and raided Houthi assets on July 11–27 en.wikipedia.org.
Environmental spill risk; Satellite imagery in mid‑July revealed an oil slick over ~125 miles, underscoring heightened environmental threats reuters.com +2vox.com +2en.wikipedia.org +2bloomberg.com.

👉 Impact: Persistent strikes forced rerouting via Cape of Good Hope. Red Sea container and tanker traffic remained below capacity, with war-risk premiums and voyage durations staying elevated.

2. 🌊 Global Trade & Freight Patterns

Suez Canal revenue sharply falls. Egypt reported a 23.4 % drop in Suez revenues in July, attributable to continued Red Sea avoidance en.wikipedia.org +9reuters.com +9splash247.com +9reuters.com +2en.wikipedia.org +2en.wikipedia.org +2.
Cape route burden rises. Rystad Energy noted these disruptions were disruptive to trade and oil markets rigzone.com. Shipping traffic remained constrained, increasing bunker demand at pivot ports.

3. 🧭 Regulatory & Environmental Milestones

Arctic HFO ban enacted (July 1)MARPOL Annex I’s new regulation banned heavy fuel oil in Arctic waters, with flexibility for protected-fuel-tank vessels until 2029 lr.org +4safety4sea.com +4reuters.com +4.
Fuel oil sampling updated (July 11)IMO circular MSC‑MEPC.2/Circ.18 now requires a 600 ml sample to verify flashpoint compliance under MARPOL Annex VI/SOLAS II‑2 transport.ec.europa.eu +11lr.org +11imo.org +11.
Interim LPG fuel guidelines approved (July 1)IMO introduced temporary safety protocols for using LPG cargo as fuel, pending formal IGC Code inclusion safety4sea.com +3marineregulations.news +3imo.org +3.

4. ⚙️ Industry Adaptation & Resilience

Military escort intensifies. U.S.–UK naval operations destroyed drones/USVs and supported convoys, though shipowners remained cautious in threat zones navytimes.com +4en.wikipedia.org +4en.wikipedia.org +4.
Rerouting strains port networks. Singapore, Rotterdam, and Cape ports faced higher bunkering demands and berth congestion due to diverted traffic.
Emissions and efficiency tech uptake. Continued focus on compliance with EEXI/CII, fuel sampling, and Arctic HFO ban. Data-driven routing, hull coatings, and green fuel trials gained traction reuters.comukpandi.com +1imo.org +1.

5. 🔍 Key Strategic Takeaways for MBIEC

Focus Area	Challenge	Strategic Opportunity
Red Sea Security	Attacks persist; Phase 5 expands threats	Enhance risk analytics, support convoys/escorts, advise new routing
Environmental Safety	Arctic HFO ban & fuel sampling mandate introduce compliance layers	Advise on cold-water compliance, sampling protocols, LPG fuel readiness
Freight Dynamics	Suez revenue hit; Cape alternative adds transit cost	Assist in port logistics planning and bunker optimization
Port Congestion	Traffic diverted strains key hubs	Offer insights on berth management, alternative port routes
Compliance Tech	New IMO guidelines and bans require retrofit strategies	Support sampling apparatus, emissions tools, and LNG/LPG readiness

✅ July 2024 Executive Summary

Phase 5 of Houthi maritime strikes began mid-July, targeting commercial vessels beyond Israeli links, with ballistic missiles, drones, and USVs.
U.S.–UK naval response dismantled UAVs and supported transits in East Africa and Red Sea.
Suez Canal revenue dropped ≈23 %, signaling heavy reliance shift to Cape of Good Hope routes.
Arctic HFO ban activated, supplemented by stricter fuel sampling and LPG-fuel guidelines.
Industry resilience strategies, including real-time intelligence, naval escorts, and port adaptations, continue evolving.
Decarbonization pressures persist, with IMO and EU agendas driving accelerated efficiency and fuel diversification.

📌 Recommendations for MBIEC Clients

Refine threat-level routing models, accounting for Phase 5 operation rules.
Normalize Arctic HFO ban compliance, implementing fuel testing and crew training.
Pilot LPG fuel systems, supported by interim IMO guidance.
Advise port clients on congestion mitigation and bunkering solutions.
Support emissions compliance retrofits and navigational efficiency systems—including use of wind-assist, coating upgrades, and sampling equipment.

July 2024 deepened the intersection of geopolitical maritime risk and environmental regulation, expanding strategic complexity. MBIEC should guide clients from threat mitigation to green compliance in a disrupted trade landscape.