Saudi Arabia's largest oil shipping company has been chartering tankers at exorbitant rates as a large fleet heads to the Red Sea to load the country's crude, serving as an alternative route following disruptions to the Strait of Hormuz. According to chartering lists, the National Shipping Company of Saudi Arabia, known as Bahri, has hired at least six Very Large Crude Carriers (VLCCs) in recent days to transport crude from the western port of Yanbu. A shipbroker and two shipowners indicated that the company's procurement efforts are likely even more extensive, with additional deals expected in the coming days.

Due to the Middle East conflict, which has effectively halted exports through the Strait of Hormuz, Saudi Arabia has been accelerating the diversion of supplies via pipeline to the Red Sea. The disruption of this critical waterway, which typically handles one-fifth of global supply, has driven crude prices to surge above $100 per barrel multiple times this week, while key tanker freight rates have reached record highs.

Bahri stated that it continues to manage its operations in accordance with established safety and operational procedures while closely monitoring regional developments, adding that it cannot comment on commercial matters. Ship-tracking data shows a fleet of tankers, stretching from Singapore to the Red Sea, is heading to Yanbu to load Saudi crude. This fleet includes at least 24 vessels, although it remains unclear who has chartered all of them.

Many of Bahri's charters are priced at 450 points on the industry-standard Worldscale index, equivalent to over $450,000 per day. Before the conflict, the industry benchmark rate had never exceeded $300,000 daily. The head of Saudi Aramco stated this week that he expects the approximately 1,200-kilometer (746-mile) pipeline across the country to reach full capacity within days, signaling an accelerated phase of Saudi Arabia's primary alternative to the Strait of Hormuz.

The pipeline can handle 7 million barrels of crude per day, though about 2 million barrels of this capacity will supply domestic refineries. This means the Red Sea diversion will handle most, but not all, of the country's regular exports. Ship-tracking data also indicates that Bahri chartered at least five additional vessels before the outbreak of the Middle East conflict, some of which now appear to be heading to Yanbu as well.