Global trade continues to function, albeit at greater risk and cost. Although there is no declared blockade of the Strait of Hormuz, it is in practice due to the real risk of shipping lines being attacked. Operational disruptions at ports and flights have also increased.
Marine tracking data from LSEG, Kpler and MarineTraffic show that more than 150 tankers and LNG carriers remain at anchor or have delayed transit in the Persian Gulf and Gulf of Oman, especially off the coasts of Iraq, Saudi Arabia, Kuwait, United Arab Emirates, Qatar and Oman, in the face of deteriorating security in the Strait of Hormuz.
Hapag-Lloyd, CMA CGM, Maersk, Mitsui O.S.K. Lines, Nippon Yusen (NYK) and Kawasaki Kisen have decided to stop operations through the Strait of Hormuz or keep vessels out of the area until the situation improves.
The March 1 escalation has seen incidents against ships and areas near the Strait of Hormuz, including:
According to Lloyd’s, several ports in the region have suspended or limited operations due to security concerns:
The attacks and retaliation have led to partial airspace closures in Iran and Iraq and flight diversions in several Gulf countries, including Bahrain, Kuwait, Qatar and the United Arab Emirates, affecting both commercial flights and cargo transport between Europe, Asia and the Middle East.
Missile and drone strikes have caused damage in:
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Temporary airport closures and air restrictions have led to flight cancellations and difficulties for business travel, which is affecting congresses, trade fairs and other international events in the Emirates.
Our partner specialist in maritime logistics, JCV Shipping, anticipates the following implications in the short term