The Energy Information Administration reported on Tuesday that the number of crude oil and oil product shipments using the longer route between Asia, Middle East, and the West has increased by 47% since the attacks on vessels taking the shorter Red Sea route began.

Shipping costs have increased due to the longer route around Cape of Good Hope, which is necessary to avoid Houthi attacks in Yemen. Historically, about 12% of the world's total shipping traffic sailed along the Red Sea or through Egypt's Suez Canal.

EIA based on Vortexa ship tracking data said that the average for 2023 was 5.9 million barrels of crude and refined product per day. The increase in oil products is the largest part of the growth.

Saudi Arabia and Iraq shipped more crude oil into Europe via the Cape than the Red Sea or Suez Canal, a 15% increase.

Refiners from Asia and the Middle East increased their refined products exports to Europe, and diverted cargoes around Cape Town. This represents 29% of increased trade.

EIA reported that the U.S. sent more products around Cape Cod to Asia, and received crude oil from the Middle East, Asia, and Europe.

The Houthis have launched frequent attacks on Russian ships, claiming that their actions are an act of solidarity with Palestinians in the Gaza war.

In the first five month of 2024, Russia shipped nearly four times more crude oil and refined product, including volumes from Caspian Pipeline Consortium to Asia than it did in 2023. Reporting by Arathy S. Somasekhar, Houston; Editing and proofreading by Josie Kao