The recent surge in attacks on oil tankers and refineries in the Persian Gulf has sent shockwaves through the global shipping industry, with several major container lines suspending all cargo bookings to the region. CMA CGM, a French multinational logistics company, was among the latest to take this drastic measure, citing the ongoing developments in the region as the reason for its decision.
The attacks on oil and gas tankers have resulted in significant damage to vessels and infrastructure, with reports indicating that at least six tankers have been damaged or sunk. The Athena Nova, a Honduran-flagged bitumen tanker operating out of the United Arab Emirates, was hit by two drones while attempting to cross the strait and is now sinking.
The U.S.-registered tanker Stena Imperative sustained damage when it was hit at the port of Bahrain, resulting in no injuries to crew members but one shipyard worker being killed and two injured. The vessel is part of the Maritime Administration's Tanker Security Program to support international trade and U.S. armed forces.
CMA CGM has advised that all bookings with immediate effect will be suspended for ports of loading/ports of discharge located in Bahrain, Kuwait, Qatar, the United Arab Emirates (all ports except Fujairah and Khor Fakkan), Saudi Arabia (all ports except Jeddah, King Abdallah Port, Yanbu, NEOM), and Iraq (port of Umm Qasr).
This move follows similar announcements by Maersk and MSC earlier in the week, which affected reefer and hazmat shipments. Hapag-Lloyd has also suspended all transits through the Strait of Hormuz, while OOCL advised its vessels to remain 200 nautical miles outside of the waterway.
The escalation of tensions in the region has significant implications for global trade, with the Middle East accounting for approximately 20% of global oil shipments. Iran's vow to cut off all oil shipments from the Persian Gulf raises concerns about the potential for further disruptions to energy supplies.
International Group of P&I Clubs, which insure 90% of global shipping tonnage, has reported that some members have issued 72-hour cancellations notices for war risk coverage after reinsurers withdrew backing. This highlights the growing unease among insurers and the need for greater clarity on the risks involved in shipping to the region.
The suspension of cargo bookings by major shipping lines is a clear indication of the escalating tensions in the Middle East and the potential for further disruptions to global trade. As the situation continues to unfold, it remains to be seen how long this suspension will last and what impact it will have on the global economy.
In addition to the suspensions by shipping lines, other countries are also taking steps to protect their interests in the region. Saudi producer Aramco has halted production at the Ras Tanura refinery, while production of liquefied natural gas was shut down at Ras Lafan.
The situation in the Middle East remains fluid and uncertain, with Iran's vow to cut off all oil shipments from the Persian Gulf raising concerns about the potential for further disruptions to energy supplies. As the situation continues to unfold, it is essential to monitor developments closely to understand their impact on global trade and the economy.
The suspension of cargo bookings to the Middle East by major shipping lines highlights the escalating tensions in the region and the potential for further disruptions to global trade.
