Shippers, Shipowners Struggle Through Hormuz Closure, Welcome Reopening

The reported reopening of the Strait of Hormuz has brought relief to global shipping operators and Nigerian importers after days of disruption that left millions of containers stranded across key transit hubs, particularly Jebel Ali Port.

President-General of the National Shippers’ Association of Nigeria, Dr. Jamilu Garo, said the temporary closure of the critical maritime corridor had severe implications not only for Nigerian shippers but for global trade flows.

According to him, Dubai’s Jebel Ali Port, a major consolidation hub for cargo bound for the Middle East and Africa, became heavily congested as shipments from across the world were unable to move onward to their destinations.

“Millions of containers were stuck, including perishable goods that have now been lost. The cost of storage alone has become a heavy burden on shippers,” Garo said.

Providing further insight into the scale of the disruption, Garo added: “Most cargoes going to the Middle East are first assembled in Dubai as a transit point. From there, they are distributed to different destinations. Once that chain is broken, everything is affected globally.”

He lamented the financial strain on operators, noting: “You may project a profit of about $34,000 on a shipment, but because of delays, demurrage and storage charges, you end up losing as much as $10,000. That is a serious setback for any business.”

Garo also highlighted the liquidity crisis facing many shippers: “Our funds are tied down in cargo sitting in transit ports like Jebel Ali. We cannot rotate capital, we cannot repatriate earnings, and that has left many operators financially stranded.”

On the human and business impact, he said: “A lot of our members are under serious pressure. Some are unable to meet obligations because their goods have not been delivered. It is not just about cargo; it is about livelihoods.”

Welcoming the reopening of the strait, Garo expressed optimism, “We are among the happiest stakeholders with this development. The reopening is not just important, it is necessary for global trade to function.”

He added that swift action was now critical: “What we expect now is immediate clearance and movement of all stranded cargoes. The faster shipments are dispatched, the quicker businesses can recover.”

The situation began to ease on April 17 when Iran’s Foreign Minister, Seyed Abbas Araghchi, announced that the strait was “completely open” to commercial traffic. His statement was reinforced by U.S. President, Donald Trump, who confirmed that the route was “ready for business.”

The development immediately calmed global energy markets, with Brent crude prices dropping by more than 10 percent to $89 per barrel, reflecting renewed confidence in oil and gas supply chains.

The strait handles between 15 and 20 percent of global oil shipments, making it one of the most critical chokepoints in international trade.

Also speaking, President of the Nigerian Shipowners Association, Sola Adewunmi, described the reopening as a major relief to the global economy.

According to him, the closure of the Strait of Hormuz contributed significantly to rising energy costs across the world, including Nigeria. He noted that although the passage had been shut by the Iranian Navy, its reopening to vessels would restore stability and ease pressure on global supply chains.

“It is a relief to the world. Opening the strait for vessel passage will help bring down costs and normalise shipping activities,” Adewunmi said.

Industry stakeholders say the incident underscores the fragility of global supply chains and the heavy reliance on strategic maritime routes.

For Nigerian shippers, the immediate priority is the swift clearance and delivery of stranded cargoes across ports in the Middle East and beyond.

Garo reiterated the urgency of recovery efforts: “We need quick intervention to ensure cargoes move without further delay. Every additional day adds to the losses.”

He concluded: “With the route now open, we are hopeful that business activities will stabilise and shippers can begin to rebuild from the losses recorded during the disruption.”