The blockade by Yemen Houthi rebels of the Suez Canal has forced tanker companies to change their routes, and the types of ships used to carry petroleum products from the Middle East to markets in Europe. Before the Houthis became a problem in the Red Sea, many of the ships carrying cargo from East Asia to Europe were Suezmax cargo and tanker ships that were named for being the largest ships able to fit through the Suez Canal. With the Suez Canal less attractive to use because of the continuing Houthi attacks, shipping companies have switched to the use of larger ships that must travel around southern Africa to reach their customers in Europe.
This meant a lot more business for VLCC (Very Large Crude Carrier) of 300,000 deadweight tons (DWT) ships. This is the largest size tanker that can use the Straits of Malacca to carry oil from the Persian Gulf to East Asia.
International Seaways (NYSE: INSW)
a fleet of 36 vessels, including 11 VLCCs
DHT Holdings (NYSE: DHT)
Their fleet of 27 VLCCs
Frontline Ltd (NYSE: FRO)
Revenue: $957.3 million
Frontline has 24 very large crude carriers