Maritime Oil & Gas Report for June 2024
- FD&A Department
- Jul 1, 2024
- 4 min read
MBIEC‑style Oil & Gas Report for June 1–30, 2024, with a focus on maritime trade lanes, regulatory changes, and sector responses:
1. 🚨 Red Sea Escalation – Houthi Attacks Intensify
June surge in missile, UAV, and USV attacks:
On June 1, the Malta‑flagged Abliani was targeted by missiles and drones near Al Hudaydah oni.navy.mil+5imo.org+5data.consilium.europa.eu+5en.wikipedia.org+12en.wikipedia.org+12en.wikipedia.org+12.
June 12, the Liberia‑flagged MV Tutor was struck and sank—marking one of the first uses of explosive-laden USVs; one crew member killed en.wikipedia.org+2skuld.com+2en.wikipedia.org+2.
Verbena caught fire and began sinking after missile strikes earlier in the month en.wikipedia.org+3skuld.com+3reuters.com+3.
U.S.–UK military retaliation throughout June:
On June 7, CENTCOM destroyed four Houthi drones, two anti-ship ballistic missiles, and a patrol boat en.wikipedia.org+4en.wikipedia.org+4en.wikipedia.org+4en.wikipedia.org+10centcom.mil+10en.wikipedia.org+10.
Continued strikes targeted radars, UAVs, and launch sites through mid-June .
➤ Impact on shipping: The upsurge in attacks disrupted Red Sea traffic, forcing reroutes via the Cape with increased voyage durations and inflated war-risk insurance.
2. 🌍 Global Trade Disruptions & Freight Impacts
Suez Canal and container shipping hit hard:
UNCTAD reported container transit capacity at anchor reached ~2.5 million TEU (~8.4% of global capacity) by mid-June due to congestion and rerouting delays wwwcdn.imo.org+15unctad.org+15reuters.com+15.
Estimate: Red Sea disruptions added ~11,000 nmi and 10 days per voyage, increasing fuel burn and freight costs wwwcdn.imo.org+2en.wikipedia.org+2wsj.com+2.
Suez traffic at half of pre-crisis levels: Egypt reported a roughly 50% drop through early 2024, costing billions in lost revenue .
Red Sea container throughput down ~90%, with tanker traffic gravitating heavily toward the Cape alternative en.wikipedia.org+13en.wikipedia.org+13unctad.org+13.
3. 🏛 IMO & Environmental Regulation – June Developments
MEPC‑81 outcomes (March–April prep):
New Emission Control Area (ECA) – Mediterranean:
Enforced from May 1, 2024, vessels in the Mediterranean must comply with 0.10% sulphur fuel standards; one-year phase-in period demaribus.netww2.eagle.org.
Arctic HFO ban scheduled:
IMO’s July 1, 2024, HFO prohibition in Arctic waters was highlighted in June bulletins wsj.com+7cleanarctic.org+7ww2.eagle.org+7.
4. 🛢 LNG & Alternative Fuels
Supply chain resilience tested:
Diversions increased bunker fuel use in Singapore to record highs, signaling strong demand from rerouted vessels wwwcdn.imo.org.
Dark‑fleet LNG activity raises compliance flags:
June saw continued dark-fleet operations; LNG logistics under scrutiny in light of sanctions .
5. 🛠 Industry Adjustments & Innovations
Operational resilience:
Shipowners adopted dynamic routing, no-sail zones, and intelligence-linked voyage planning.
War-risk insurance recalibrated for Red Sea and Bab al-Mandeb exposures.
Efficiency and compliance upgrades:
Carriers accelerated hull cleaning, slow steaming, and wind/hybrid propulsion alongside EEXI/CII implementation reuters.com+2en.wikipedia.org+2centcom.mil+2.
Port congestion prompted increased cooperation with bunker suppliers and berths at Rotterdam, Singapore, and EU hubs.
Military escort reliance:
U.S.–UK naval presence (e.g., Operation Prosperity Guardian) provided critical convoy support and threat deterrence imo.org+15en.wikipedia.org+15unctad.org+15wsj.com+1oni.navy.mil+1.
6. 🔍 Strategic Considerations for MBIEC
✅ Executive Snapshot
June saw renewed maritime violence, including Houthi USV strikes and missile/UAV attacks, sinking MV Tutor and disabling Abliani and Verbena.
US–UK military strikes ramped up, targeting Houthi radars and drones, but Red Sea remained high risk.
Rerouting burden grew significantly, with higher bunker demand in Singapore and inflated international freight rates.
IMO regulatory pressure intensified, with Mediterranean SOx ECA active and Arctic HFO ban approaching, plus climate-efficiency frameworks accruing pace.
Shipping industry escalated resilience efforts, leveraging navies, optimizing fuel use, and accelerating green retrofits.
📌 Recommendations for MBIEC Clients
Refine transit-risk models with Red Sea attack patterns, USV possibilities, and conflict de-escalation triggers.
Benchmark bunker strategies for high-usage rerouting corridors, tying into port coordination plans.
Ensure robust compliance readiness for sulphur, HFO bans, and imminent onboard carbon measures.
Vet LNG routes and vessels, focusing on sanction exposure, port clearance, and dark-fleet avoidance.
Integrate maritime security into contracts, including naval escort clauses and insurance protection schemes.
Effective June, the convergence of intensified maritime conflict and regulatory enforcement has tested the industry’s adaptability. MBIEC’s clients benefit from strategic planning that addresses security, cost, regulation, and compliance in a dynamic trading environment.
June 2024 Maritime & Red Sea News
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