The Chinese-operated oil tanker Xin Long Yang, carrying Saudi Arabian crude, recently reappeared on ship-tracking systems in the Gulf of Aden after sailing through the Bab el-Mandeb strait with its Automatic Identification System (AIS) switched off. This practice, known as "dark mode" transit, is increasingly adopted by commercial vessels in high-risk areas. The Xin Long Yang had previously made a U-turn in the southern Red Sea due to Houthi warnings but later resumed its southward journey.
Simultaneously, another China-owned oil tanker, Cosnew Lake, was also nearing the Bab el-Mandeb strait. Both vessels are managed by China's state-owned COSCO Shipping and loaded crude at Saudi Arabia's Yanbu port in the past week, each carrying approximately 2 million barrels of Saudi oil. Their movements occurred despite recent Houthi attacks on Saudi tankers and ongoing threats to shipping in the Red Sea.
This continued transit of Chinese-linked tankers suggests Beijing's confidence in its commercial shipping operating through the strategic waterway, potentially due to a perceived lower threat from Houthi rebels compared to other nations' vessels. Analysts suggest a broader understanding between Beijing and the Houthi-Iran axis might be at play, given China's role as a major buyer of Iranian sanctioned crude, which helps fund the Houthi movement.
Despite the successful transit of these Chinese tankers, overall shipping traffic through the Bab el-Mandeb strait has significantly declined following Houthi warnings and attacks. For instance, transits dropped from 64 to 30 commercial vessels in a 24-hour period ending on Tuesday afternoon. Several international shipping companies continue to avoid the Red Sea, and insurers maintain elevated war-risk premiums for vessels in the region, reflecting the volatile security conditions.
The successful, albeit partially clandestine, transit of Chinese tankers through a Houthi-blockaded area highlights a complex geopolitical dynamic in the Red Sea, where China's existing commercial relationships may afford its vessels a degree of safe passage. This situation allows China to continue importing crude oil, even as general shipping activity in the strait remains subdued and global oil prices, such as Brent crude, have risen to over $100 a barrel.
