Strait of Hormuz shipping disruption to last months
Shipping through the Strait of Hormuz is likely to operate at less than half its normal capacity for months as naval mines and narrow navigation channels continue to restrict traffic, according to executives at some of the world’s biggest shipping companies.
The CEO of Japan’s NYK Line, Takaya Soga, said only two narrow transit routes are currently usable and warned shipping volumes are unlikely to return to pre-conflict levels anytime soon, while the International Maritime Organization estimates Iran may have laid about 80 naval mines in the waterway, the Financial Times reports.
A prolonged disruption would continue to complicate exports for Gulf energy producers including Saudi Aramco and ADNOC, while logistics operators such as AD Ports Group and DP World face slower vessel movements through one of the world’s busiest shipping lanes, even as alternative routes remain available for some cargoes.
Security risks have persisted since the June 17 U.S.-Iran agreement, with an Evergreen Marine container ship attacked after passing through the strait and a tanker reporting hull damage after being struck by an unidentified object, while Iran’s Revolutionary Guard requires ships to coordinate transits with its navy.
Although NYK, China’s COSCO Shipping and Italy’s Grimaldi have resumed some voyages, insurance company Allianz estimates more than 1,200 cargo ships carrying about $125 billion of goods were stranded during the disruption, and freight forwarder Kuehne+Nagel said there is no clear timetable for a full recovery.