COSCO SHIP ENGY (01138) continued its upward momentum, advancing nearly 5% in Thursday's trading session. At the time of writing, the stock was up 4.8% at HK$16.39, with turnover reaching HK$141 million.

According to maritime industry reports, in response to escalating navigation risks in the Strait of Hormuz and the Bab el-Mandeb Strait, COSCO Shipping Energy Transportation and China Merchants Energy Shipping are restructuring their Middle East tanker deployment strategies. These companies are now loading cargo outside the strait, utilizing ship-to-ship transfers, and relying on alternative ports to sustain China's crude oil imports, having essentially ceased loading operations inside the Persian Gulf.

Analysts point out that ship-to-ship transfers and extended voyage distances will continue to tie up VLCC (Very Large Crude Carrier) capacity, tightening supply in the market. This comes as geopolitical tensions have pushed international oil tanker freight rates to elevated levels.

The situation intensified after Iran's refusal to open the Strait of Hormuz, and a Houthi attack on a cargo vessel on August 11 resulted in six fatalities. Asian buyers have shifted their purchasing focus to the Gulf of Oman, where scarce VLCC availability in the Gulf region has driven daily charter rates to approach $500,000. The risk premium is currently concentrated in mid-to-large-sized tanker segments.

Market observers suggest that the combination of rerouted shipping lanes and increased demand for ship-to-ship operations is likely to sustain the current tightness in VLCC supply, supporting freight rates in the near term.