Ships in and around the Strait of Hormuz are facing the most intense period of missile and drone attacks by Iran since the start of the US-Israeli strikes against the Islamic republic seven months ago, causing shipowners to reconsider carrying cargoes in the region. Six vessels were attacked on Sunday alone, according to the naval agency UK Maritime Trade Operations, making it the deadliest day of attacks on shipping near the strait since the conflict began, according to FT calculations.
Of the ships hit, three were refined product tankers, while two others were crude oil tankers belonging to the Chinese company New Treasure Shipping and South Korea's Sinokor, according to maritime security company Vanguard. An Indian container ship was also hit, following attacks on Indian-crewed ships in recent days that injured several seafarers. Two Indian seafarers from one of the product tankers were reported missing. India's foreign ministry said the attacks were "deeply concerning" and called for an immediate resolution to the conflict.
According to FT data drawn from UKMTO reports and European security sources, 24 ships were hit in the two weeks to October 11. The next most intense period was the first two weeks of March, when 13 ships were hit. The Institute for the Study of War said Iran "may be developing its anti-ship missile capabilities to improve its ability to target vessels."
Oil flows out of the Gulf reached an average of 15.5mn barrels per day in September, their highest level since the war began, according to commodities platform Kpler. Since then, exports have plummeted. Only 2.9mn barrels were carried through the waterway on October 11, and the seven-day average was about 43 per cent below pre-conflict levels. Shipowners have started avoiding the area, and some vessels have turned away from Fujairah, the UAE anchorage on the Gulf of Oman, instead heading to US Gulf of Mexico ports.
Freight rates remain high amid a global tanker shortage. Average global supertanker earnings hit a fresh record on October 9 of $805,000 per day, according to shipbroker Clarksons, which estimated that longer routes and ship-to-ship transfers were increasing tanker demand by about 13 per cent.
Source: Financial Times Companies · Summarized by HeadlinesBriefing