Strait Of Hormuz: Shipping Disruptions Deepen As 10% Global Container Fleet Trapped

About 10 per cent of the world’s container ship fleet is currently ensnared in the growing maritime crisis around the Strait of Hormuz, raising fears of severe cargo congestion at major transhipment hubs in Europe and Asia.

Also, Ocean Network Express (ONE) and rival carriers, including industry leader MSC, have suspended cargo bookings to the Middle East.

The chief executive officer of Ocean Network Express (ONE), Jeremy Nixon, disclosed this at S&P Global Market Intelligence’s TPM26 container shipping conference in Long Beach.

According to Nixon, container vessels account for roughly 100 of the 750 ships caught in the wider shipping disruption triggered by escalating U.S. and Israeli strikes on Iran and Tehran’s retaliation.

“About 10 per cent of the container ship global fleet is caught up in this,” Nixon said, warning that “all of that cargo is going to start backing up” in key shipping hubs across Europe and Asia.

The situation worsened after maritime insurers halted war-risk coverage for voyages through the Strait of Hormuz, the strategic chokepoint between Iran and Oman that handles roughly one-fifth of global oil consumption and significant volumes of natural gas.

Insurance firms, including Gard, Skuld, NorthStandard, the London P&I Club, and the American Club, announced the cancellation of war-risk coverage effective March 5.

Industry sources said war-risk premiums have surged from about 0.2 per cent of a vessel’s value last week to as high as 1 per cent within 48 hours.

For a $100 million tanker, that translates to an increase from roughly $200,000 to about $1 million per voyage.

Munro Anderson of Vessel Protect, part of Pen Underwriting, described the situation as a “de facto close” of the strait driven largely by perceived threats rather than a formal blockade.

Tankers Damaged, Ships Stranded

Shipping traffic through the Strait has slowed dramatically after several vessels were hit amid retaliatory actions. At least five tankers have reportedly been damaged, two personnel killed, and approximately 150 vessels stranded in the area.

Among the affected ships is the Honduran-flagged Nova, which was reportedly struck by drones and left burning.

The U.S.-flagged product tanker Stena Imperative, owned by Stena Bulk and managed by Crowley, sustained damage from aerial impacts while berthed in the Gulf, resulting in the death of a shipyard worker.

Vessels are now clustered in open waters off major Gulf oil producers, including Iraq, Saudi Arabia and LNG heavyweight Qatar, according to ship-tracking data from MarineTraffic.

The disruption has rattled energy markets. Brent crude futures jumped as much as 13 percent amid fears of prolonged closure of the waterway and multiple oil and gas shutdowns in the Middle East.

Nixon warned that an extended closure would trigger a “big energy spike,” compounding global inflationary pressures.

Shipping costs for crude moving from the Middle East to Asia, already at a six-year high, are expected to climb further as shipowners hesitate to deploy vessels into the conflict zone.