Strait of Hormuz turmoil: Maersk halts sailings as tensions roil oil routes

Global shipping giant A.P. Moller-Maersk has suspended all vessel crossings through the Strait of Hormuz, citing escalating tensions in the Middle East. 

“We are suspending all vessel crossings in the Strait of Hormuz until further notice. As a result, services calling ports in the Arabian Gulf may experience delays, rerouting, or schedule adjustments, ” the Danish shipping company said. 

Maersk added it will pause future Trans-Suez sailings through the Bab el-Mandeb Strait for now. All sailings on the Middle East-India to Mediterranean and Middle East-India to East Coast US services will instead be rerouted around the Cape of Good Hope. 

The decision follows mounting disruptions in the key oil artery after the US and Israel attacked Iran and Tehran said it had closed navigation, trading sources said on Saturday. Multiple vessels in the area have received VHF transmissions from Iran’s Revolutionary Guards that “no ship is allowed to pass the Strait of Hormuz”, an official with the EU naval mission Aspides told Reuters. 

The British Navy said Iran’s orders were not legally binding and advised vessels to transit with caution. 

Shipbroker Poten & Partners said vessel traffic through the Strait has not completely stopped but disruptions are building rapidly. The tanker association INTERTANKO said the U.S. Navy had warned against navigation across the Gulf, Gulf of Oman, North Arabian Sea and the Strait of Hormuz, noting it could not guarantee the safety of shipping. 

Greece’s shipping ministry has advised vessels to avoid the Persian Gulf, the Gulf of Oman and the Strait of Hormuz, according to an advisory seen by Reuters. 

Roughly 20% of global oil — including supplies from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran — passes through Hormuz, along with large volumes of LNG from Qatar. Fourteen LNG tankers have slowed, U-turned or stopped in or around the Strait, consultancy Kpler said, warning the number is likely to rise and could threaten Qatari LNG exports. 

German container-shipping group Hapag-Lloyd has also suspended all vessel transit through the Strait of Hormuz until further notice, warning of possible delays, rerouting and schedule changes for services calling Gulf ports.