Rising Threat to Commercial Shipping in Arabian Peninsula Waters
The world's largest shipowners' organization, Bimco, has issued a warning about the escalating threat to commercial shipping in the Arabian Peninsula. This follows the recent U.S. attack on Iranian nuclear facilities and heightened tensions in the region. The Houthi threat in the Red Sea and Gulf of Aden is also a major concern.
Key Concerns
Bimco suggests Iranian targets may include U.S. warships and vessels linked to Israel or the U.S. Maersk has already suspended port calls to Haifa, Israel.
Impact on Global Trade
The Strait of Hormuz, a critical oil chokepoint, is particularly vulnerable. Disruptions could significantly impact global energy prices and supply chains. In 2023, the Strait handled about 20% of global petroleum liquids consumption.
Freight Rate Increases
The conflict has caused ocean freight rates from Shanghai to Jebel Ali to jump 55%. Tanker rates between the Middle East and China have also soared. Increased security measures, higher fuel prices, and faster sailing through risky areas are contributing factors. Marine insurance rates for vessels transiting the Strait of Hormuz have increased by over 60%.
Bimco's Recommendations
Bimco advises shipowners to review security risk assessments and consider rerouting vessels away from the Iranian coast, maintaining close contact with naval forces, and increasing vigilance.