Strait of Hormuz Opens, Turmoil to Persist for Months, Analysts Predict

Strait of Hormuz Closure Causes Significant Disruption to Global Shipping Industry

A substantial portion of the world’s energy supply has been impacted by the closure of the Strait of Hormuz, a key waterway that connects the Persian Gulf to the Arabian Sea. The International Maritime Organization (IMO) reports that approximately 2,000 ships are currently stranded in the region due to Iran’s partial blockade of the strait.

The blockade, which began on February 28, has allowed passage for only a few vessels from countries deemed friendly. As a result, shipping firms have diverted many vessels to alternative routes, including the Suez Canal and the Cape of Good Hope in Southern Africa. Oil shipments from Saudi Arabia have also been rerouted through the Red Sea.

Shipping experts predict that even if the strait reopens tomorrow, the disruption to global supply chains will be felt for an extended period. Nils Haupt, senior director for corporate communications at Hapag-Lloyd, stated that “when the war is officially over, and the bombardments are stopped, that does not mean that the war is over for logistics.” He noted that hundreds of ships will still need to navigate the region, leading to potential disruptions in supply chains.

The IMO has confirmed at least 18 attacks on vessels across the Gulf since the war began. Svein Ringbakken, managing director of the Norwegian Shipowners’ Mutual War Risks Association, stated that it would take months to clear the backlog of goods unloaded from vessels. He attributed this delay to damage to energy and transport infrastructure across the Middle East.

The closure of the Strait of Hormuz has also raised questions about how shippers will conduct their business in the future. SV Anchan, chairman of Safesea, noted that “the emergence of asymmetric threats, including unmanned attack capabilities, has fundamentally altered the risk environment.” The IMO has confirmed that these types of attacks have become a significant concern for the industry.

As the situation continues to unfold, shipping firms and logistics companies are working to mitigate the impact of the blockade. However, it remains unclear when or if the strait will reopen, and how long it will take to restore normal operations in the region.

Source: Al Jazeera