While negotiations between the United States and Iran to bring an end to the current conflict continue, any agreement to open the Strait of Hormuz will be followed by a complex process.
With approximately 1,500 containerships, tankers, and cargo vessels stranded in the Persian Gulf for nearly three months, vessel owners and operators will need to know how their ships will be prioritized if transit through the Strait of Hormuz is restored. Representing shipping companies, Jakob P. Larsen, Chief Safety and Security Officer of the Baltic and International Maritime Council, explained the challenges. “We will need to know which route to take and then, of course, what kind of coordination or permits or whatever would need to be obtained with which authorities,” said Larsen.
In addition, the risk of ships hitting sea mines is likely to keep insurance rates high for the foreseeable future. The International Energy Agency reported that the American, British, French, and German navies would need several weeks to deploy minesweepers. With one vessel stranded in the Gulf, Lasse Kristoffersen, the leader of Wallenius Wilhelmsen, forecasts that it would take at least 30 to 45 days until shipping in the region returned to normal, provided everything went to plan.
In normal times, close to 130 ships transit the strait each day, which is 21 nautical miles wide at its narrowest point.
IAM Member Impact: Members can expect continued delays and increased costs, even after any successful resolution to the current conflict.
Source: New York Times