Latest news with #BIMCO
Yahoo
27-06-2025
- Business
- Yahoo
Amid Israel-Iran Tensions, Shipping Slows Down in Strait of Hormuz
The escalating conflict between Israel and Iran has not had a direct impact on global freight yet, but shipping companies are growing leery of traversing through the Strait of Hormuz, the channel that connects the Persian Gulf to the Arabian Sea. While the trade chokepoint remains open for business, traffic through the strait dwindled over a week's span, according to data from the Joint Maritime Information Center (JMIC). More from Sourcing Journal New BGMEA Chief Warns of Shipping Disruption From Iran-Israel Conflict Israel's Strikes on Iran Trigger Elevated Shipping Risks Across Middle East China-to-US Freight Rates 'No Longer Surging'-Is it All Downhill from Here? In an advisory update on Monday, JMIC illustrated that 147 cargo-carrying vessels sailed through the Strait of Hormuz on June 9, three days before Israel carried out a series of airstrikes against Iranian nuclear facilities. By June 15, only 111 vessels were passing through. According to the JMIC, threat levels for ships operating in the Strait of Hormuz, Arabian Gulf and Northern Arabian Sea remain elevated. JMIC was clear in its advisory that 'there are no confirmed indications of an immediate threat to maritime traffic,' but confirmed reports of electronic interference affecting vessels' ability to accurately transmit positional data via automated identification systems (AIS) in both the strait and the Arabian Gulf. Jakob Larsen, head of security at international shipowners' association BIMCO, told CNBC the conflict resulted in a 'modest drop' in the number of ships sailing through the area. The attacks on Iran have created some concern that the country's military will block off access to the strait, which hosts the flow of approximately 20 percent of the world's liquid oil supply, according to the U.S. Energy Information Administration. But such a closure would impact container shipping operations as well, even though only 2 percent to 3 percent of estimated global container traffic passes through, according to data from Container Trade Statistics (CTS). Major Middle Eastern transshipment hubs in the UAE, including Dubai's Jebel Ali Port and Abu Dhabi's Khalifa Port, would lose access to the vessels and their cargo. These ports play a significant role in trade across the Middle Easta and facilitate large volumes of sea-to-air relay shipments, while also linking the region to markets in the Indian subcontinent and Africa. 'A ripple effect of such action would be a sharp increase in handlings in transshipment hubs outside of the Persian Gulf with high risk of a wider Asian congestion issue,' said Lars Jensen, CEO of Vespucci Maritime, in a post on LinkedIn. 'It would be a major problem related to imports and exports to and from Saudi Arabia, UAE, Qatar, Bahrain, Kuwait and Iraq. Likely we would see container lines not affiliated with the conflict trying to pick up the slack from those affected—same as we have seen for Red Sea transits.' As such, capacity concerns could spring up if too many vessels are instead forced to stop at other already crowded transshipment ports, whether it Shanghai, Singapore or the Port of Colombo in Sri Lanka—ultimately resulting in more shipping delays. 'Any closure of the Strait of Hormuz would see services rerouted, with increased reliance on India West Coast ports for connecting the Far East to the Indian subcontinent,' said Peter Sand, chief analyst at Xeneta. 'The inevitable disruption and port congestion, as well as the potential for higher oil prices, would cause a spike in ocean freight container shipping rates, with carriers likely also pushing for a 'security surcharge' on these trades in the coming days.' On Monday, Maersk slapped a $4,000 peak season surcharge on all containers exiting the Middle East and Indian subcontinent on the way to the North American West Coast set to go into effect July 16. Hapag-Lloyd is adding its own $1,000 surcharge on all containers shipping from those origin regions to all ports in North America, which will begin July 15. There's also the concern of spiking war-risk insurance premiums, which had been prevalent in Red Sea travels and a reason many container shipping companies havankers e still opted to avoid the waterway. Until June 13, the additional premium for a commodity's transit through the Persian Gulf was around 0.05 percent of the cargo's value for companies with annual sales of $500 million or higher, and closer to 0.1 percent for others, according to S&P Global Commodity Insights. But as the conflict escalates, costs could potentially double, the firm says. As uncertainty surrounds the Strait of Hormuz and the Middle East, two oil tankers collided and caught fire near the conduit on Tuesday morning. One of the tankers, the Adalynn, evacuated 24 people. Personnel on the second tanker, the Front Eagle, were reported safe. No injuries or spillage were reported. British maritime security monitor Ambrey said that the collision was 'not security related.' In the wake of the collision, Qatar asked liquefied natural gas (LNG) vessels to wait outside the Strait of Hormuz until they're ready to load amid escalating tensions in the region, according to Bloomberg. Iran has interfered with container shipping in the Strait of Hormuz in the past, having seized the 14,000 20-foot equivalent unit (TEU) MSC Aries ship last April. Although Iran released the crew the next month, the country still retained control of the vessel.
Zawya
23-06-2025
- Business
- Zawya
Shipping rates up 20-30% due to rising geopolitical tensions: Report
Shipping rates have surged by 20 percent to 30 percent amid escalating geopolitical tensions, according to Jakob Larsen, chief safety and security officer at BIMCO, one of the largest shipowners' associations. Insurance premiums for vessels transiting the Strait of Hormuz have increased over a seven-day period due to heightened concerns about geopolitical tensions, he told CNBC Arabia. While shipping operations through the Strait remain largely unaffected for now, Larsen warned that vessel traffic could decline if the conflict escalates. The daily shipping cost per vessel currently stands at $25,000, the report stated. Larsen expects insurance premiums to rise tenfold compared to the total value of the vessel based on past geopolitical crisis scenarios. Many ship operators have opted to limit the number of voyages through the region and are taking precautionary measures to safeguard their vessels against potential attacks, he added. (Writing by P Deol; Editing by Anoop Menon) (
Shafaq News
14-06-2025
- Politics
- Shafaq News
Iran mulls closing Strait of Hormuz after Israeli strikes
Shafaq News/ Iran is seriously considering shutting down the Strait of Hormuz, a key global oil route, following Israel's recent airstrikes on its territory, an Iranian lawmaker told Reuters on Saturday. Brigadier General Esmail Kowsari, a senior military official, had confirmed that the option is on the table. 'We are studying the matter carefully and will act decisively if necessary,' he said. The move follows ongoing Israeli attacks that began Friday, with fresh strikes today targeting military and nuclear sites in several Iranian provinces, including Tabriz, Khorramabad, and Kermanshah. The Strait of Hormuz, a narrow waterway between Iran and Oman, handles a significant portion of the world's oil shipments. Any closure would disrupt global energy supplies and maritime trade. Iran has previously threatened to block the strait in response to Western pressure, but the latest escalation raises the stakes. Jakob Larsen, chief safety and security officer at global shipping association BIMCO, confirmed that more vessel operators are avoiding the Red Sea and Persian Gulf. 'If the US is perceived to be involved [in the Israeli assault], the risk of escalation increases significantly,' he cautioned. "Such an escalation could include missile attacks on ships or laying of sea mines in the Strait."
Asharq Al-Awsat
14-06-2025
- Business
- Asharq Al-Awsat
Ships Warned to Avoid Red Sea, Log Hormuz Voyages after Israel Hits Iran
Merchant shipping is continuing to pass through the Strait of Hormuz despite Israel's attacks on Iran on Friday, the multinational, US-led Combined Maritime Force said, although some shipowners were looking to avoid the region. Iran has in the past threatened to close the critical Strait of Hormuz to traffic in retaliation for Western pressure. Any closure of the Strait could restrict trade and impact global oil prices. "The Strait of Hormuz remains open and commercial traffic continues to flow uninterrupted," the Combined Maritime Force said in advisory, adding that events over the past day had increased the likelihood of regional conflict to "significant". Greece and Britain have advised their merchant shipping fleets to avoid sailing through the Gulf of Aden and to log all voyages through the Strait of Hormuz following Israel's attacks on Iran, documents seen by Reuters showed. "We have reports that more ship owners are now exercising extra caution and are opting to stay away from the Red Sea' and the Arabian Gulf, said Jakob Larsen, chief safety & security officer with shipping association BIMCO. If the United States is perceived to be involved in any attacks, "the risk of escalation increases significantly", Larsen said. "Such an escalation could include missile attacks on ships or laying of sea mines in the Strait (of Hormuz)." Israel said it had targeted nuclear facilities, ballistic missile factories and military commanders during the start of a prolonged operation to prevent Tehran from building an atomic weapon. Iran denies having any such plan. "Hormuz is a critical waterway, without alternative, for tanker trades and any impediment or threat to free movement of shipping would have a significant effect upon the world's economy," tanker shipping association INTERTANKO said. Greek ship owners were urged to send details of their vessels sailing through the Strait of Hormuz to Greece's maritime ministry, according to one of the documents issued by Greece's shipping association, which was sent on Friday. Greek owners control the world's biggest tanker fleet. "Due to developments in the Middle East and the escalation of military actions in the wider region, the (Greek) Ministry of Shipping ... urgently calls on shipping companies to send ... the details of Greek-owned ships that are sailing in the maritime area of the Strait of Hormuz," the document said. All UK-flagged vessels, which include the Gibraltar, Bermuda and Isle of Man 'red ensign' registries, were advised to avoid sailing through the southern Red Sea and the Gulf of Aden, a separate document issued by the UK's transport ministry said. If sailing through those areas, vessels must adhere to their highest level of security measures and limit the number of crew on deck during voyages, said the advisory, seen by Reuters. The European Union's naval mission in the Red Sea, Aspides, is continuing operations as normal but is monitoring developments in the region, an Aspides official told Reuters.
Business Recorder
14-06-2025
- Business
- Business Recorder
Ships warned to avoid Red Sea, log Hormuz voyages
ATHENS: Merchant shipping is continuing to pass through the Strait of Hormuz despite Israel's attacks on Iran on Friday, the multinational, US-led Combined Maritime Force said, although some shipowners were looking to avoid the region. Iran has in the past threatened to close the critical Strait of Hormuz to traffic in retaliation for Western pressure. Any closure of the Strait could restrict trade and impact global oil prices. 'The Strait of Hormuz remains open and commercial traffic continues to flow uninterrupted,' the Combined Maritime Force said in advisory, adding that events over the past day had increased the likelihood of regional conflict to 'significant'. Greece and Britain have advised their merchant shipping fleets to avoid sailing through the Gulf of Aden and to log all voyages through the Strait of Hormuz following Israel's attacks on Iran, documents seen by Reuters showed. 'We have reports that more ship owners are now exercising extra caution and are opting to stay away from the Red Sea and the Persian Gulf,' said Jakob Larsen, chief safety & security officer with shipping association BIMCO. If the United States is perceived to be involved in any attacks, 'the risk of escalation increases significantly', Larsen said. 'Such an escalation could include missile attacks on ships or laying of sea mines in the Strait (of Hormuz).'
