Sharp decline in ship movements and a jump in insurance costs to 10%

Shipping data showed that the number of vessels transiting the Strait of Hormuz fell further at the start of the week, as caution grew following renewed exchanges of attacks between the United States and Iran. According to data from Kpler, only four bulk commodity carriers transited the strait on Monday, most via the Iranian route, down from seven the previous day. The four vessels included two tankers exiting the strait and two entering it. One of the two exiting tankers was carrying petrochemicals, while the other was empty, according to Reuters. Meanwhile, the two entering tankers were carrying bitumen and oil, respectively, and no supertankers or liquefied natural gas carriers were seen transiting the strait on Monday.

On Tuesday, the UK Maritime Trade Operations (UKMTO) said it had received multiple reports indicating that a tanker had sent a distress signal after being hit by an unidentified projectile in the Strait of Hormuz.

In a separate development, the Greek shipping company DynaCom Tankers said two of its vessels were hit by unidentified projectiles on Monday while sailing off the coast of Oman, while a third tanker was attacked by a drone at the Russian Novorossiysk CBP terminal in the Black Sea.

Shipping market sources indicated that marine insurance premiums for vessels transiting the Strait of Hormuz had reached 10% of the vessel’s value, the highest level recorded since the onset of the Iran war, compared with previous rates ranging between 1% and 3%. The surge in premiums prompted some insurers to suspend quotes for transits, while others advised shipping companies to suspend voyages through the strait due to war risks.

Meanwhile, Bloomberg reported that one of the world’s largest oil tanker operators offered crew members a bonus equivalent to six months’ salary for sailing through the Strait of Hormuz, amid escalating tensions between the United States and Iran.