Oil transfers off India's west coast surge as Gulf congestion worsens

Ship‑to‑ship (STS) oil transfers in India's Gulf of Kutch rose sharply in September, reaching 82 cargoes – roughly 680,000 barrels per day. The surge reflects congestion and operational limits in the Gulf of Fujairah and Sohar, forcing more oil to be moved off India's west coast. Waiting times for the full transfer process now exceed a week, up from five to six days earlier.

Key facts

• 82 STS cargoes in the Gulf of Kutch in September, about 680,000 bpd
• Refined products accounted for about 65 % of the Kutch volume, crude the rest
• Process time for transfers now exceeds one week, versus five‑six days before
• South Korea, India, China and Japan took almost 70 % of the Kutch cargoes
• A recent tanker strike off Fujairah and attacks on Saudi’s East‑West pipeline added pressure

Background

Gulf oil producers have been using STS transfers to keep crude flowing to Asia as the traditional export route around Hormuz faces congestion, attacks and pipeline disruptions. When vessels cannot load directly in the Gulf, they shuttle oil to transfer zones like Fujairah and Sohar, then move it to supertankers outside the strait.

Operational limits and a recent tanker strike in Fujairah caused some of that transfer activity to spill over to India's west coast, where calmer waters and proximity to Indian refineries make the Gulf of Kutch an attractive STS zone. Analysts note that while overall tanker demand has not shifted dramatically, waiting times for transfers have lengthened.

What this means for exporters and importers in Punjab

For manufacturers in Punjab and North India who ship containers or air cargo, the shift of oil tankers to Indian waters signals tighter vessel availability on key routes. Longer waiting times for tankers could put upward pressure on ocean‑freight rates for bulk and container ships, potentially increasing shipping costs for exported goods such as machinery, auto parts and textiles.

Extended transfer times also suggest possible delays in port handling and berth allocation at western Indian ports like Kandla and Mundra. Exporters may face longer lead times to get their cargoes onto vessels, while importers could see higher freight invoices and may need to plan extra buffer time.

Discounting of crude by Gulf producers to offset transit risks may indirectly affect fuel prices for inland transport and for vessels calling at Indian ports, influencing overall logistics costs for North Indian shippers.

What you can do now

• Discuss current freight rates with your logistics provider and ask whether recent oil‑tanker congestion could affect your ocean‑freight quotes
• Review shipment schedules to allow extra time for possible berth delays at western Indian ports
• Check if any contract Incoterms need adjustment to reflect higher freight costs or longer transit times
• Monitor updates on Gulf shipping conditions and be ready to consider alternative Indian ports if congestion worsens