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Oil and gas transportation companies crossing the Strait of Hormuz are anxious

by Bunkerist
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Transport companies including Tankers, LNG carriers, ship owners and operators passing through the Strait of Hormuz are at risk

Ship owners, operators and shippers are very uncomfortable with the tension in the Middle East. This brings with it a sharp increase in freight costs, higher war insurance premiums and efforts to reduce possible risks.

After a US drone attack last Thursday, after Iran’s General Qassem Soleimani was killed in Baghdad, shipowners of the British and British flag-bound ships ordered their ships to sail away from the Iranian coast and stay away from Iranian waters. He even advised to maximize the speed of the ships while passing through the Strait of Hormuz and exit the risky area as soon as possible.

According to the U.S. Energy Information Administration (EIA), oil flow from the Strait of Hormuz in 2018 equals an average of 21 million b / d or approximately 21% of global oil consumption.

The Strait of Hormuz is the most important gateway in the world due to the large volumes of oil carried. Since Iran has threatened to close the watercourse in the past in the region, Britain has increased security around the Strait of Hormuz.

HIGH SEA ATTACK RISK

Singapore-based ship brokers have announced that risk management teams have been in meetings since the attack took place, and the situation was far more serious than tanker attacks in 2019, and their expectations were exceedingly worrying.

Since the incident happened just after the New Year’s holiday, the reaction in the freight market has not been seen yet. The picture is expected to be clearer this week.

The high threat to ships in the region is likely to head first to ships with the US and Saudi flags. Ships with flags of the US-related countries are also at high risk. There is also a high risk for US cargoes, ships that hold assets, or their economic interests.

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