Algeria Warns of Possible Gas Price Rise for Spain

Sonatrach CEO Toufik Hakkar said that Sonatrach could not at present substitute Russian gas Eric PIERMONT AFP
Sonatrach CEO Toufik Hakkar said that Sonatrach could not at present substitute Russian gas Eric PIERMONT AFP
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Algeria Warns of Possible Gas Price Rise for Spain

Sonatrach CEO Toufik Hakkar said that Sonatrach could not at present substitute Russian gas Eric PIERMONT AFP
Sonatrach CEO Toufik Hakkar said that Sonatrach could not at present substitute Russian gas Eric PIERMONT AFP

Algeria's state-owned energy giant Sonatrach warned Friday it could increase the price of its gas sales to Spain, against the backdrop of a diplomatic row with Madrid over the disputed Western Sahara.

"Since the start of the Ukraine crisis, gas and oil prices have skyrocketed. Algeria has decided to stick, for all its customers, to relatively fair contract prices," Sonatrach CEO Toufik Hakkar told the national news agency APS.

"But a 'recalculation' of prices for our Spanish customer is not ruled out," he said.

Algiers last month recalled its ambassador from Madrid in protest at a decision by Spain, which is heavily dependent on Algeria for its gas supplies, to back a Moroccan autonomy plan for Western Sahara.

Algeria has condemned the "abrupt about-turn" by Madrid, which had previously sought to maintain neutrality in the decades-old conflict over the territory disputed by Morocco and the Algiers-backed Polisario Front independence movement.

Questioned on Europe's hunt for alternative energy suppliers in place of Russia, heavily sanctioned over its invasion of Ukraine, Hakkar said that Sonatrach could not at present substitute Russian gas.

But "with the pace of our exploration, our capacity will double in four years, which could open promising prospects with our European clients," the Sonatrach chief said.



WTO Launches $50Mln Fund for Female Entrepreneurs in Developing World

Director-General of the World Trade Organization Ngozi Okonjo-Iweala launched on Sunday a $50 million fund to help female entrepreneurs in developing countries. (UNCTAD website)
Director-General of the World Trade Organization Ngozi Okonjo-Iweala launched on Sunday a $50 million fund to help female entrepreneurs in developing countries. (UNCTAD website)
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WTO Launches $50Mln Fund for Female Entrepreneurs in Developing World

Director-General of the World Trade Organization Ngozi Okonjo-Iweala launched on Sunday a $50 million fund to help female entrepreneurs in developing countries. (UNCTAD website)
Director-General of the World Trade Organization Ngozi Okonjo-Iweala launched on Sunday a $50 million fund to help female entrepreneurs in developing countries. (UNCTAD website)

Director-General of the World Trade Organization Ngozi Okonjo-Iweala launched on Sunday a $50 million fund to help female entrepreneurs in developing countries to export more using the opportunities offered by the digital economy.

The announcement came ahead of the 13th ministerial conference of the WTO which opens on February 29 in the United Arab Emirates.

Okonjo-Iweala said the “ground-breaking initiative... embodies our collective commitment to empower women.

“We need catalytic solutions to solve the financing issue that women face,” she added.

The fund will help businesses run by women in developing countries to adopt digital technologies and increase their online presence.

Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, said his country would contribute $5 million to the fund, adding: “This initiative allows us to celebrate the invaluable contribution of women entrepreneurs and women-led businesses around the world and to recognize the critical role they play in driving economic growth.”

“While women are one half the world’s population, they only contribute 37 percent to the global GDP,” he said.

Also at the announcement was Saudi Arabian Minister of Commerce Majid al-Kasabi, who called it a “milestone” and said his country was “dedicated” to supporting female empowerment.

Okonjo-Iweala said that in meeting female entrepreneurs, “a common refrain among them is the need for adequate financing to scale their businesses and to tap into the vast opportunities of global trade.”


Saudi Arabia, Austria Discuss Economic Cooperation

The Saudi Minister of Economy and Planning met on Sunday with the Austrian Federal Minister for the EU and Constitution. SPA
The Saudi Minister of Economy and Planning met on Sunday with the Austrian Federal Minister for the EU and Constitution. SPA
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Saudi Arabia, Austria Discuss Economic Cooperation

The Saudi Minister of Economy and Planning met on Sunday with the Austrian Federal Minister for the EU and Constitution. SPA
The Saudi Minister of Economy and Planning met on Sunday with the Austrian Federal Minister for the EU and Constitution. SPA

The Saudi Minister of Economy and Planning, Faisal bin Fadhil Alibrahim, met in Riyadh on Sunday with the Austrian Federal Minister for the EU and Constitution, Karoline Edtstadler.

During the meeting, the two sides discussed bilateral relations between the Kingdom and Austria, and ways to strengthen economic cooperation between both countries, in addition to recent developments in the region.


Saudi Arabia Announces Significant Increase in Proven Reserves of Gas, Condensate in Jafurah

Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Asharq Al-Awsat
Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Asharq Al-Awsat
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Saudi Arabia Announces Significant Increase in Proven Reserves of Gas, Condensate in Jafurah

Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Asharq Al-Awsat
Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Asharq Al-Awsat

Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz stated that Saudi Aramco has been able to significantly increase the quantities of proven reserves of gas and condensate in the Jafurah unconventional field.

The additional proven reserves reached 15 trillion standard cubic feet of gas and 2 billion barrels of condensate.

The Minister indicated that this achievement is a result of applying the highest international standards in estimating and developing hydrocarbon resources in a manner that ensures proper exploitation.

Resources at Jafurah are now estimated at 229 trillion standard cubic feet of gas and 75 billion barrels of condensates. Resources and proven reserves estimates have been certified by a major independent consulting company, specialized in assessing resources and proven reserves.


Saudi Arabia Tells the Story of its Energy Transformation

Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
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Saudi Arabia Tells the Story of its Energy Transformation

Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)
Prince Abdulaziz bin Salman presents the progress made by Saudi Arabia in the field of energy transition. (World Energy Forum website)

Saudi Arabia shared the story of its energy transformation that began in 2019, displaying its achievements towards an innovative and sustainable future at the 14th Symposium of the International Energy Agency, the International Energy Forum and OPEC, which was recently held in Riyadh.

During the event, Saudi Minister of Energy Prince Abdulaziz bin Salman presented a report entitled, “The progress made in Saudi Arabia towards the energy transition and the upcoming global challenges,” stressing that energy transition in the Kingdom has been proactive and comprehensive since 2019, when the country adopted the circular economy approach.

The minister pointed to the launch of two major initiatives in 2021, namely the Saudi Green Initiative, which aims to pump investments worth about $266 billion to generate clean energy, in addition to reducing carbon emissions by 278 billion tons annually until 2030.

The second is the Middle East Green Initiative, which aims to mobilize efforts of various stakeholders to reduce carbon emissions by an amount equivalent to 10 percent of global contributions, thus reducing carbon emissions from oil production in the region by more than 60 percent.

The report explained the progress Saudi Arabia has made in the field of energy transition, including saving the equivalent of 492,000 barrels of oil per day since the start of the Saudi Energy Efficiency Program (SEEP) in 2012 and implementing the liquid fuel displacement program in the electricity production sector, which aims to eliminate the burning of one million barrels of liquid fuel by utilizing renewable energy sources.

The Kingdom also plans to increase its capture and storage capacity to 44 million tons annually by 2035, which includes capturing and using two million tons annually of carbon dioxide to produce glycol, green methanol, and clean fuel.

Moreover, the report pointed to the goal of generating 50 percent of electricity from renewable energy by 2030 and increasing reliance on clean hydrogen and low-emission fuel by shipping 150,000 tons of clean ammonia to the world.

Saudi Arabia is also considering establishing a complex to use carbon dioxide and hydrogen gas for the purpose of producing clean fuel derivatives and works to plant 600 million trees by 2030.

The Kingdom has the second lowest methane intensity, and is committed to further reducing methane emissions from oil and gas, according to the report.

Based on a study conducted by the King Abdullah Petroleum Studies and Research Center (KAPSARC), using the Kayrros satellite emissions measurement, it was found that the density of methane gas in Saudi Arabia was 73 percent lower than the value reported by the International Energy Agency. This means that the Kingdom has the second lowest methane intensity among major oil and gas producing countries.

The carbon intensity of the barrel produced by Saudi Arabia is also among the lowest in the world. It has the second lowest carbon intensity among major crude oil producers. In 2021, the country joined the Zero Neutrality Forum for Oil Producers with Canada, Norway, Qatar, the United Arab Emirates, and the United States, which aims to discuss how to support the implementation of the Paris Climate Change Agreement.

As of 2024, the Kingdom plans to offer 20 gigawatts of renewable capacity annually, a goal that only China and the United States have exceeded.

In December 2023, Prince Abdulaziz bin Salman announced that the Kingdom plans to launch renewable energy projects with a capacity of 20 gigawatts in 2024, after it has succeeded in doubling its production of renewable energy four times from 700 megawatts to 2.8 gigawatts.

Also in 2023, the market mechanism for compensating and balancing greenhouse gases (carbon equivalents) was activated. The mechanism aims to issue carbon certificates to stimulate investments in projects that seek to reduce emissions of these gases in all sectors in the Kingdom, and to help achieve the country’s nationally determined contributions under the umbrella of the Framework Convention on Climate Change and the Paris Agreement.

Globally, the Ministry of Energy says that the world has made progress towards mitigating the effects of climate change since the Paris Agreement in 2015, with green investments exceeding $1.8 trillion in 2023, in addition to reviving the Loss and Damage Fund.

Global renewable capacity additions also rose from about 150 GW in 2015 to nearly 510 GW in 2023, the fastest growth rate in the past two decades. Since 2015, more than 300 million people have had access to electricity and more than 700 million people have obtained clean cooking fuels, in addition to the United Nations Climate Change Conference (COP28) reaching a historic agreement on the deep, rapid and sustainable reduction of greenhouse gas emissions in a nationally defined way through eight global efforts.

However, the ministry indicated that despite this progress, further efforts should be deployed to achieve the global transformation in the field of energy, by overcoming major challenges, most notably mobilizing investments and financing.

Gaps in transition financing represent a major obstacle for developing countries in pursuing their net zero ambitions.

The energy transition requires annual investments estimated at about $6 trillion ($1.8 trillion secured in 2023). The annual investments needed represent 7.5 percent of the entire global GDP. This therefore requires that international financial systems evolve to facilitate the required growth of public and private financing.

The Ministry of Energy believes that although renewable energy sources are growing at a record rate, more efforts are needed to increase renewable capacity three-fold in less than a decade. For this purpose, $8 trillion is needed for new installed capacity and $3.6 trillion for grid expansion.


QatarEnergy Set to Further Expand LNG Output at North Field

The new Qatar Energy logo is pictured during a news conference in Doha, Qatar, October 11, 2021. Qatar News Agency/Handout via REUTERS/File Photo
The new Qatar Energy logo is pictured during a news conference in Doha, Qatar, October 11, 2021. Qatar News Agency/Handout via REUTERS/File Photo
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QatarEnergy Set to Further Expand LNG Output at North Field

The new Qatar Energy logo is pictured during a news conference in Doha, Qatar, October 11, 2021. Qatar News Agency/Handout via REUTERS/File Photo
The new Qatar Energy logo is pictured during a news conference in Doha, Qatar, October 11, 2021. Qatar News Agency/Handout via REUTERS/File Photo

QatarEnergy chief Saad al-Kaabi announced on Sunday a new expansion of its liquefied natural gas production that will add a further 16 million tons per annum (mtpa) to existing expansion plans, bringing total capacity to 142 mtpa.
With this added boost, the overall expansion of the North Field from 77 mtpa currently to 142 mtpa by 2030 represents an increase of 85% in production, Kaabi said at a press conference in Doha.
State-owned QatarEnergy has already signed a string of supply deals with European and Asian partners in its massive North Field expansion project, which was expected - prior to Sunday's announcement - to produce 126 million mtpa of LNG per annum by 2027, from the current 77 mtpa.
Exploration activities in the west of North Field prompted the company's decision to expand further.
In December, Kaabi told Reuters that QatarEnergy had been drilling wells to assess expansion opportunities beyond the North Field East and North Field South phases.
This latest expansion will require the construction of two LNG trains, in addition to six already underway for the earlier expansions dubbed North Field East and North Field South.


Oman Insurance Sector Expected to Grow by More than 10 Percent

The insurance sector's contribution to the gross domestic product is about 1.23 percent. Oman News Agency
The insurance sector's contribution to the gross domestic product is about 1.23 percent. Oman News Agency
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Oman Insurance Sector Expected to Grow by More than 10 Percent

The insurance sector's contribution to the gross domestic product is about 1.23 percent. Oman News Agency
The insurance sector's contribution to the gross domestic product is about 1.23 percent. Oman News Agency

The Sultanate of Oman's insurance sector is expected to witness a 10 percent growth in 2024, said Mustafa Ahmed Salman, member of the Board of Directors of the Oman Chamber of Commerce and Industry (OCCI) and Chairman of the Chamber’s Finance and Insurance Committee.

The insurance sector is one of the fastest growing sectors in the Sultanate. Its contribution to the gross domestic product is about 1.23 percent, and the growth rate of insurance premiums in 2022 reached about 13 percent.

Salman pointed out that raising the capital of insurance companies will contribute significantly to their ability to bring in more investors and help their businesses to grow better.

In a statement to the Oman News Agency, Salman said: “The contribution of the insurance sector to the gross domestic product of the Sultanate of Oman currently amounts to 1.3 percent. This is a good percentage rate compared to other Arab countries.”

He further said that the volume of Arab insurance reached about $45 billion and constitutes one percent of the volume of global insurance industry.


Source: ExxonMobil Weighs Offers for Argentina Shale Assets

FILE PHOTO: ExxonMobil logo is seen in this illustration taken, October 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: ExxonMobil logo is seen in this illustration taken, October 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Source: ExxonMobil Weighs Offers for Argentina Shale Assets

FILE PHOTO: ExxonMobil logo is seen in this illustration taken, October 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: ExxonMobil logo is seen in this illustration taken, October 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

US energy giant ExxonMobil Corp is weighing offers for its oil and gas assets in Argentina's Vaca Muerta shale region, a source familiar with the plan said on Friday, adding there was no time frame for a decision and the sale may not move forward.
Bloomberg earlier on Friday reported that ExxonMobil was exploring a $1 billion sale of its shale assets in the South American country, a process that started last year.
"The process began in August, it continues to advance and the offers are being evaluated," the source said, asking not to be named as the matter was confidential. The person added that the firm had received offers earlier this month.
"At the beginning of February they presented binding offers. There is no time or due date to provide a response to say how the operation continues. They are being evaluated by the shareholders," the source said.
Earlier this week, Mexican firm Vista Energy , Argentina's second-largest shale oil producer behind state-owned YPF, publicly expressed its interest in Exxon's Vaca Muerta assets.
"They have interesting assets. And yes, we are looking into that," Vista CEO Miguel Galuccio said on a conference call on Wednesday.
Exxon's assets in Argentina include stakes it owns in seven oil-and-gas blocks in Vaca Muerta.
The company declined to comment on the matter when contacted by Reuters.
Argentina, battling an economic crisis, is betting on Vaca Muerta, the world's second-largest shale gas reserve and fourth-largest for shale oil, to turn the country into an energy powerhouse and curb dependence on costly imports.
The source told Reuters that any sale, if it went ahead, would not be a "political" decision but part of a wider portfolio management. It also would not include a large global service center with some 3,000 employees in Buenos Aires, the person added.
Argentina's new right-wing libertarian President Javier Milei is contending with a severe economic crisis, with inflation running at more than 250%, depleted foreign currency reserves, and strict capital controls to defend the peso currency.
The economic crisis has created challenges for companies operating in the country, though the government is making a major push to ramp up investment in Vaca Muerta.


Investment Ministry: Development of Local Investments is Major Catalyst of Saudi Economy

Dr. Saad Alshahrani participates in a session at the Priority Summit in Miami. Asharq Al-Awsat
Dr. Saad Alshahrani participates in a session at the Priority Summit in Miami. Asharq Al-Awsat
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Investment Ministry: Development of Local Investments is Major Catalyst of Saudi Economy

Dr. Saad Alshahrani participates in a session at the Priority Summit in Miami. Asharq Al-Awsat
Dr. Saad Alshahrani participates in a session at the Priority Summit in Miami. Asharq Al-Awsat

The Saudi Investment Deputy Minister for Economic Affairs and Investment Studies, Dr. Saad Alshahrani, has stressed that the development of local investments is a major driver of the Saudi economy, pointing out that the economic performance of the Gulf region and the Middle East has made it attract more foreign investments.

He cited the significant growth achieved by the Kingdom in the last three years in the volume of local and foreign investments.
In a statement to the Saudi Press Agency during his participation in the Priority Summit in Miami, Al-Shahrani pointed out that fixed capital formation achieved a growth of 29% in 2022.
The number of issued investment licenses in recent years, reached nearly 9,000 licenses issued during 2023 while previously, it did not exceed 400 licenses.

The investment opportunities before launching the National Investment Strategy (NIS) were approximately 200, and today there are approximately 1,600 investment opportunities in different quality industries and multiple regions in the Kingdom, through 40 initiatives and four pillars.
Al-Shahrani said that the National Investment Strategy signifies Saudi Arabia's commitment to diversifying its economy and catalyzing growth through strategic investments, adding that the comprehensive incentives program, including 30-year tax exemptions, showcases Saudi Arabia's determination to attract and support global investors in key sectors like manufacturing and technology.


UAE's ADQ Consortium to Invest $35 Bn in Egypt

Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
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UAE's ADQ Consortium to Invest $35 Bn in Egypt

Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)

ADQ, an Abu Dhabi-based investment and holding company, has unveiled plans to invest $35 billion in Egypt.  

ADQ will acquire the development rights for Ras El-Hekma for $24 billion to develop the region into one of the most significant new city developments by a private consortium.  

ADQ will also convert $11 billion of deposits that will be utilized for investment in prime projects across Egypt to support its economic growth and development.  

Ras El-Hekma is a coastal region in Egypt located approximately 350 kilometers northwest of Cairo, spanning over 170 million square meters.

The significant investment marks a pivotal step towards establishing Ras El-Hekma as a leading first-of-its-kind Mediterranean holiday destination, financial center, and free zone equipped with world-class infrastructure to strengthen Egypt's economic and tourism growth potential.  

The Egyptian government will retain a 35% stake in the Ras El-Hekma development.  

Ras El-Hekma will be a next-generation city comprising mainly of tourism amenities, a free zone, and an investment zone combining, among others, residential, commercial, and recreational spaces with seamless connectivity domestically and internationally.  

ADQ is leveraging its expansive portfolio and partners, aiming to unlock the appeal of Ras El-Hekma as a premium international financial and tourism destination, adopting the latest cutting-edge digital and technological smart city solutions.  

The Holding Company will also benefit from Egyptian and international partners to support its development and investment plans.  

ADQ's experience in providing fully integrated infrastructure solutions across a broad range of services promises to bring significant benefits to the new development and Egypt's economy and is expected to attract over $150 billion in investments.  

ADQ CEO Mohamed al-Suwaidi said the company is a long-standing investment partner in Egypt and has demonstrated its ability to select opportunities aligned with its investment framework and benefit the Egyptian economy.  

"The investment underscores our commitment to developing Ras El-Hekma into one of Egypt's most attractive coastal destinations through the enablement of mega-infrastructure and development projects," Suwaidi was quoted by the UAE state news agency (WAM).  

He explained that the company will work with partners such as Modon Properties and Talaat Moustafa Group to deliver value across multiple sectors of Egypt's vibrant economy.


Red Sea Attacks Hike Up Shipping Insurance Rates

A giant cargo ship near the Red Sea (AFP)
A giant cargo ship near the Red Sea (AFP)
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Red Sea Attacks Hike Up Shipping Insurance Rates

A giant cargo ship near the Red Sea (AFP)
A giant cargo ship near the Red Sea (AFP)

Houthi attacks on commercial ships in the Red Sea hiked the shipping insurance rates, with fees being imposed to cover risks associated with conflicts.
Since last Nov. 19, Iran-backed Houthis have targeted ships in the Red Sea that they suspect are linked to Israel or heading to its ports.
Houthis say their attack is in support of the Gaza Strip, which has been witnessing a war since Oct. 7, 2023.
According to the International Monetary Fund (IMF), Red Sea container shipping dropped 30% within a year.
The Red Sea is a vital route that usually carries about 12-15% of global trade, based on European Union figures.
Commercial boats need to obtain three types of insurance: hull insurance covers damage to the vessel, cargo insurance covers the vessel's load, and protection and indemnity insurance includes coverage for damage caused to third parties.
However, Premiums for ships and their cargos have "increased significantly" following the Houthi attacks, according to Frederic Denefle, head of Garex, a French firm specializing in marine risk insurance.
Garex told AFP that they have increased in proportion to the threat level.
Head of Marine and aviation at the Lloyd's Market Association (LMA), Neil Roberts, told AFP that the Red Sea is a Listed Area, meaning that vessels planning to enter must notify their insurers.
Insurance providers can then review the vessel and its voyage and demand an extra war premium on top of normal coverage.
The war premium, however, is limited to a short period.
However, Marsh Marcus Baker's global head of marine, cargo, and logistics explained that this new coverage is usually valid for only seven days, considering that hostilities may escalate.
General Manager of Ascoma International Claire Hamonic indicated that war insurance premiums have multiplied by five to ten times for vessels and cargo crossing the Red Sea.
- Huge sums of money
According to several sources contacted by AFP, the current rate of war risk premium stands at between 0.6 percent and 1.0 percent of the value of the ship.
The amounts can equal a considerable sum when some of the enormous vessels are worth over 100 million euros.
The nationalities of the companies owning or operating the ships are also considered.
Houthis have begun targeting US and UK ships, considering that they have become "legitimate targets" since Washington and London launched joint strikes on Houthi sites inside Yemen several times since Jan. 12.
The US Army alone carries out strikes from time to time that it says target sites or missiles and drones prepared for launch, the most recent of which was last Wednesday.
Head of operations at war insurance specialist Vessel Protect Munro Anderson said that the Houthis expressly indicated that they are targeting US and UK-connected vessels" or those linked to Israel.
Anderson explained that many vessels are flagged or associated with countries that don't carry the same risk profile.
"For example, Chinese connected vessels. Hong Kong Chinese connected vessels, of which there are lots, are trading in that area. Those will be able to add less premium than those connected with Israel, UK and US."
The Houthi strikes have also prompted some shipping companies to detour around southern Africa to avoid the Red Sea.
However, Hamonic warned that the diversion of ships around the Cape of Good Hope could "very possibly lead to a resurgence in piracy in the Indian Ocean."
"That risk extends from just below the Red Sea and towards the coast of Somalia," she added.
The journey takes an additional 10 to 15 days via this route, and sometimes up to 20 days, depending on the vessel's speed.
According to a London Stock Exchange Group report, the cost of a trip from Asia to northwestern Europe increased by 35% for a large container ship, and up 110% for an Aframax, an oil tanker with a deadweight between 80,000 and 120,000 metric.
- Impact on inflation
Meanwhile, analysts from Moody's Investors Services said on Thursday that attacks on merchant vessels in the Red Sea have delayed cargo and sent higher shipping costs, but soft demand and ample ship availability are muting the impact on inflation.
Nevertheless, Daniel Harlid, a transport sector analyst, said diversions are not expected to affect inflation because they are not driven by demand significantly.
Rerouting ships around Africa requires anywhere from 6% to 10% more vessels due to longer sail times, slowing the return of ships to their origination points, and sending on-demand spot rates on some routes up more than 100%.
The increases came off rock-bottom levels, and shipping experts expect them to normalize. Owners who have new ships arriving were struggling to fill existing vessels with cargo before the Houthi attacks began in November.