10 Major Oil Shipping Routes in The World

Crude Oil is an important energy source used in several machines, equipment, and products, such as cosmetics and paints. According to the United States Energy Information Administration Report, around 61% of the world’s crude oil is transported via seaborne routes linking the major oil-producing regions and the markets. There are international oil shipping routes and internal routes within a region or a country that handle oil shipments.

Maritime Chokepoints

Strategic global shipping routes are usually referred to as maritime chokepoints. Most of these are in the Middle East since most global oil production happens in this region. The oil is shipped on large tankers to Europe, Asia, Africa, and the Americas.

Other areas that produce significant quantities of oil are North and West Africa, Siberia and the Central Asian region, the North Sea, China, the Malay region, and the Caribbean region in South America.

The Middle East is the largest exporter of crude oil, followed by North and West Africa and the Southeast Asian region. This oil mainly reaches Northwestern European countries, China and Japan.

One of the most important maritime chokepoints is the Persian Gulf. Oil transportation routes from the Persian Gulf reach Europe via the Suez Canal. Another important chokepoint is the Malacca Strait.

The Oresund Strait mainly sees oil tankers originating from Russia destined for European markets, though the U.S. has placed many sanctions on Russia due to its war in Ukraine. Most Oil from the Gulf of Mexico oil fields arrives in the U.S.

Oil is also shipped using underwater pipelines. For example, Alaska’s and Canada’s petroleum is transported to the U.S. through pipelines.

Let us look at some of the important oil shipping routes in the world.

1. Hormuz Strait Route

Lying between Iran and Oman, this strategic waterway links the Persian Gulf with the Arabian Sea and the Gulf of Oman.

It is the world’s most significant oil shipping lane, with a recorded oil flow of about 21 million barrels daily in 2022. Additionally, around one-fifth of the world’s total LNG shipments also passed through this strait in the same year.

According to the information on Vortexa, which tracks tanker movements, Saudi Arabia ships the most crude oil through the Hormuz Strait.

More than 80% of crude oil that passed through this strait ended up in Asia in 2022, with the top importers being India, China, South Korea and Japan.

The U.S. imported around 0.7 million b/d of oil and condensate from the Middle East via the Hormuz Strait. Since 2018, the U.S. has bought less crude oil from the Persian Gulf nations as its production has risen.

Ships are not the only entities transporting crude oil through the Hormuz Strait. Saudi Arabia and the UAE have oil pipelines that traverse this waterway.

Saudi Aramco’s east-west pipeline can transport 7 million barrels a day. The United Arab Emirates has connected its oil fields to the Fujairah export facility on the Oman Gulf through a pipeline with a 1.5 million barrel per day capacity.

In 2021, Iran also opened its new pipeline and export facility on the Oman Gulf. However, it has not used it much since its inauguration.

2. Malacca Strait- The shortest route to Asia

This crucial waterway lies between Indonesia, Singapore and Malaysia. It also links the Indian and Pacific Oceans via the controversial South China Sea. Malacca Strait is the shortest maritime route between the oil suppliers in the Persian Gulf and Asian markets.

Indonesia and China are two major recipients of the oil passing through this strait. It is also an essential sea route for LNG originating from Africa and the Persian Gulf, especially Qatar. This LNG is mainly destined for East Asian markets with rising demands.

The waterway is just 1.7 miles broad at its narrowest, so there are high chances of ship collisions, oil spill accidents, and ship groundings. Piracy is another major issue faced by tankers crossing this route.

If this chokepoint is blocked, 50% of the world’s ships will have to go around Indonesia’s Lombok Strait and the islands of Bali or via the Sunda Strait.

Several programs have been suggested to reduce tanker traffic in this strait, and a few have been implemented. For instance, a pipeline for transporting natural gas via the strait was opened, spanning from the ports in Myanmar to China.

3. Suez Canal Route

Egypt’s Suez Canal is another vital oil transportation route. It links the Red Sea and the Suez Gulf with the Mediterranean Sea. Per the Suez Canal Authority, around 3.9 million b/d of crude oil and refined products crossed the strategic canal in 2016.

The Suez Canal can accommodate some of the world’s biggest container vessels and bulk carriers; however, ultra-large crude Carriers cannot cross it. Also, entirely loaded VLCC oil tankers cannot pass through it due to their enormous size and fluctuating water levels in the reservoir.

Many vessels couldn’t pass through the waterway until the Canal’s depth was increased to accommodate over half of all tankers.

Crude Oil passing through the Suez Canal reached Europe, North America and Asia. Iraq and Saudi Arabia were the two countries that sent most of their crude oil to Europe.

Russian oil exports comprised most of the canal’s southbound oil flow, followed by Turkiye, the Netherlands, Libya and Algeria. Over half of this oil ended up in Singapore, India and China.

Rising oil shipments in the past few years indicate greater oil production, particularly in Saudi Arabia and Iraq.

However, the number of oil tankers passing through the Suez Canal has decreased due to Houthi Attacks on commercial shipping in the Red Sea, Persian Gulf, and Arabian Sea.

4. Bab el-Mandeb Strait

This strategic chokepoint between the Middle East and the Horn of Africa links the Red Sea to the Aden Gulf and the Arabian Sea.

Most natural gas and petroleum exports from the Persian Gulf that cross the Suez Canal go through the Hormuz and Bab el Mandeb Straits to reach their destinations.

Approximately 6.2 million b/d of refined petroleum products, crude oil, and condensate passed through this strait in 2018, destined for the U.S., Asian, and European Markets.

Prior to 2015, the volumes of LNG passing through this strait were comparable to those crossing the Suez Canal, as Red Sea Ports lacked LNG handling infrastructure.

After 2015, Egypt and Jordon began to import LNG, with their shipments rising to 1.4 billion cubic feet a day in 2016, 80% of which came via Bab el Mandeb.

Also, since many natural gas fields have been explored in Egypt, it has started to import less LNG through this strait.

At its narrowest, the Bab el Mandeb is 18 miles broad. Hence, there are two lanes, one each for incoming and outgoing tanker traffic.

If the strait were attacked, forcing its closure, tankers would have to reroute around Africa, increasing shipping expenses and times.

5. Turkish Straits

These two international chokepoints lie in northwestern Turkiye and consist of several passages connecting the Aegean and Mediterranean seas to the Black Sea.

These comprise the Bosphorus and Dardanelles waterways, which divide the Asian and European continents. Both these waterways lie in Turkey, and crude oil from Russia and the Caspian Sea region passes through the Turkish Straits to reach markets in western and southern Europe.

The Turkish Strait is just half a mile broad at its narrowest and can be difficult to navigate due to its geographical features. Still, over 47,000 ships pass through these crucial waterways each year, making it a busy oil transportation route.

Though part of Turkiye, commercial ships can pass through them during peacetime. However, Turkiye can impose safety or environmental regulations.

In 2016, around 2.5 million b/d of oil and petroleum passed through the Turkish straits, originating from Russia and other Eurasian nations like Kazakhstan and Azerbaijan.

Maritime traffic in the Turkish Straits increased from 2005 onwards, with rising production from Kazakhstan and Azerbaijan.

6. Danish Straits

Danish Straits comprise several channels which link the Baltic and the North Seas.

More than 60% of all Russian oil exports shipped via the Baltic Sea pass through the Danish Straits on their way to markets worldwide.

After the Port of Primorsk opened in 2005, Moscow began using its baltic ports for crude oil export. In 2012, Oil Shipping from Primorsk accounted for around 50% of all exports passing through the Danish Straits, though the volume of oil decreased in 2016, falling by about 30%.

From November 2023 onwards, the Danish Maritime Authority was directed to stop tankers carrying Russian oil through the Danish Straits, per EU regulations aimed to impose a price cap on Russian oil amidst its war in Ukraine.

7. Cape of Good Hope

Lying on South Africa’s tip, the Cape of Good Hope is also a vital oil shipping route. It is a transit area for oil tankers destined for different parts of the world. In 2016, around 5.8 million b/d of crude oil was shipped via this route.

This oil mostly came from Africa, the Caribbean, and South America and was destined for Asia, the Middle East, and America.

This can also serve as an alternative sea route for ships sailing towards the west that want to bypass the Suez Canal, Gulf of Aden, and Bab el Mandeb.

However, rerouting ships around the cape increases shipping times and costs. Also, if the Suez Canal is closed, oil tankers must go around the Cape of Good Hope.

8. Panama Canal Route

The 50-mile-long Panama Canal links the Pacific Ocean with the Caribbean Sea and the Atlantic Ocean. Over 14,000 ships crossed the canal in 2016, carrying over 200 million tonnes of cargo.

Cargo emerging from or destined for the U.S. accounts for over 60 % of the shipments that cross the Panama Canal. The second largest share is that of China.

In January 2024, increased shipments of LPG and ethane from the U.S. passed through the canal. These exports ended up in East Asian countries.

Exporting oil and other shipments decreased via the Panama Canal in 2023 as it faced drought-like situations with decreasing water levels. However, now more ships pass through the Panama Canal as water levels in the Gatun Lake have improved. The lake’s water is used to operate the locks of the Panama Canal.

Shipping companies can book Panama Canal slots ahead of time. Some slots are auctioned for a fee and are mainly used by VLGCs.

U.S. propane shipments increased from November last year to February this year. Rising demand for propane has led to vast quantities being shipped by the U.S. via the Panama Canal to Asia.

9. Singapore Strait

This 114 km long and 16 km broad waterway can be dangerous to navigate at some points, with high chances of oil spills, maritime accidents, and even pirate attacks.

However, if the Malacca Strait were closed, ships would need to sail from around Indonesia, causing an energy crisis worldwide as a significant volume of the world’s oil and gas passes through it.

Malacca Strait and Singapore Strait comprise a thousand-kilometre channel between the Malay peninsula, Singapore, Indonesia’s Sumatra, and other islands located south. Approximately one-third of the world’s oil crosses this route, vital for Japan as over 80% of its oil comes from it.

Over 400 ships pass through this strait each day.

10. Gibraltar Strait

The strategic location of this waterway near the entrance of the Mediterranean Sea makes it an important shipping lane with around 6000 ship crossings annually. Of all the vessels, around 30% are oil tankers, which transport about 500,000 tonnes of crude oil through the strait daily.

The Gibraltar Strait connects the Mediterranean Sea and the Atlantic Ocean and offers dry docking and bunkering services to ships. Its importance as a bunker point increased as the Port of Aden became unsafe for ships due to Yemen’s civil war.

In 2021, more than 5000 ships received over 4 million tonnes of bunker fuel.

Several maritime routes from Europe or North America’s east coast and the Suez Canal also pass through the Gibraltar Strait.

Other Oil Shipping Routes

• Route from North Africa, the Mediterranean Sea, and Gibraltar Strait to North Europe.
  Crude oil from North African nations like Libya is shipped via this route to Antwerp, Belgium, and Rotterdam, Netherlands.
• Atlantic to West Europe & North America
• West Africa through the Cape of Good Hope to East Asia.
• West Africa to Strait of Malacca to Taiwan Strait to China
• This route ships oil from West African nations like Nigeria and Angola to China.
• Southeast to East Asia, used by Panamax tankers for short-distance transport of oil within the region.
• Persian Gulf to West Europe and North America: Around 650 million tonnes of crude oil is shipped via this route annually, mainly in supertankers.
• Persian Gulf to Japan: Around 100 million tonnes of crude oil is shipped to Japan through this route each year.
• Mexico to Japan: This route goes through the Pacific Ocean via the Panama Canal to Japan, and another route goes from Mexico’s west coast to Japan via the North Pacific.

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About Author

Zahra is an alumna of Miranda House, University of Delhi. She is an avid writer, possessing immaculate research and editing skills. Author of several academic papers, she has also worked as a freelance writer, producing many technical, creative and marketing pieces. A true aesthete at heart, she loves books a little more than anything else.

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