MORE ABOUT STRAIT OF HORMUZ
Worries about the potential closure of the crucial trade chokepoint have led to an increase in tankers changing their routes away from the Strait of Hormuz. Industry data provider Kpler’s senior liquid market analyst Yui Torikata has stated that things are changing.
Two extremely large crude carriers, three chemical tankers, and one refined products carrier all changed their routes away from the Strait of Hormuz between early Sunday and early Monday, according to the firm’s data.
On June 20, the Norwegian flagged Damsgaard set sail from Pakistan’s Qasim port for Abu Dhabi’s Ruwais. South Loyalty, flying the flag of the Marshall Islands, set sail from Ulsan port in South Korea on May 14 for Basrah, Iraq.
Pond of COSWISDOM (Flag of Hong Kong, leaving Zhanjiang, China, on June 7 for Zirku, United Arab Emirates)
Currently, the Kohzan Maru (flagged by the United Kingdom) has no scheduled port calls after leaving Niigata on May 29. On June 22, Marie C, flying the flag of the Marshall Islands, left the anchorage in Fujairah and is making her way to Kuwait.
The ships are all in ballast, which means they are not carrying any cargo or very light loads.
At present, all three ships are sitting idle between Khor Fakkan and Muscat. “It would be helpful to view this particular weekend event in a broader context,” Torikata observed.
The number of empty [ballast] crude carriers in the Middle East Gulf zone reached an all-time low immediately following the Israel-Iran conflict, suggesting that shipowners were very hesitant to enter the area.
Having said that, the trend has turned around. The number of crude carriers in the Gulf of Oman indicating their intention to enter the Mideast Gulf has also recovered from the low seen on June 16.
“At least for the time being, it appears that the general influx of ships into the area is continuing unabated, even in light of the recent, particular diversion event.” These actions are in response to Saturday’s U.S. strike on three Iranian nuclear enrichment sites.
The reports from the UK Maritime Trade Operations regarding extensive electronic interference, GPS jamming, and location spoofing are adding to the concerns of vessel owners, according to Andy Lipow, president of Lipow Oil Associates.
Fears of escalating conflicts
Near the Strait of Hormuz, a collision occurred last week between the frontline tanker Front Eagle and the dark fleet tanker Adalynn. The confrontation caused a fire to break out on the Front Eagle’s deck, which was later put out.
Iran’s parliament voted on Sunday to block the Strait of Hormuz, according to a report from Iran’s state-owned Press TV.
According to Lipow, “some owners will simply avoid the area — like Frontline” due to rising insurance costs.”If there is a shortage of tankers to transport the oil that needs to be exported, this causes a de facto partial disruption to the supply,” he added.
Even though Iran’s oil exports are vital to its economy and the country would rather not cut them off, if it feels trapped, it may opt to cause as much economic hardship as it can on other countries.
Additional geopolitical instability, according to Lipow, could be sparked by the conflict. Lipow stated, “We have not seen China provide Iran with any kind of support other than words,” in reference to China’s negative stance on the US attack on Iran.
“The United States targeted Iran, Russia attacked Ukraine, and now China might feel emboldened to attack Taiwan.”
Due to the danger to Iran-affiliated commercial ships and the potential environmental disaster in the event of a shipwreck, Larsen expressed doubt about Iran’s motivations for laying sea mines, calling it another dangerous development.
The Persian Gulf–Arabian Sea strait known as the Strait of Hormuz is a major oil chokepoint on the global stage. Worldwide energy prices, shipping costs, and supply delays can all be sharply increased if oil is even momentarily unable to pass through.
