A massive fleet of vessels, numbering over 20,000 crew members, is currently grounded due to the protracted conflict and security risks in the region.
Shipping congestion in the Hormuz Strait is expected to persist even if hostilities between the U.S. and Iran cease, according to the CEO of V.Group, who emphasized that vessels stuck in the Gulf require guarantees for safe passage before they can depart.
Related ↗British companies halt recruitment amid Iran conflict impact, REC research indicates.A fragile peace is being strained by renewed fighting, leaving thousands of sailors stranded as over 20,000 seafarers wait out the closure of the Hormuz Strait.
Rene Kofod-Olsen, V.Group's CEO, reported that their company, which oversees approximately 800 vessels, has a significant backlog in the Gulf, with 13 ships currently stuck, including half being tankers.
Read next ↗Tate & Lyle accepts a £2.7 billion all-cash acquisition from Ingredion.During the Posidonia shipping week in Athens, a speaker noted that a supposed truce was in place at the time.
Activity levels remain elevated, according to Kofold-Olsen, who cited potential drone or missile threats.
To restore normal maritime flow, shipping companies require concrete guarantees for safe transit, a notion that necessitates collective involvement from the global community, as was the case when 125 vessels typically navigated through Hormuz daily.
Shipping industry experts warn that Hormuz Strait passage is unlikely without prior assurances, according to Kofod-Olsen's candid assessment yesterday.
Gathering in Athens, shipping experts noted a growing concern: despite crew rotations within the Gulf, supply replenishment for vessels in the area remains feasible, yet the conflict's impact is escalating steadily.
Industry stakeholders face complex operational scenarios due to vessel congestion, posing challenges for both shipping companies and their insurance providers, according to Alex Gregg-Smith, Bureau Veritas' marine and offshore president.
Backlogs are straining shipping company resources.
Bahamas maritime registry Managing Director Dwain Hutchinson revealed to that a significant number of Bahamian-flagged ships, totaling 14, were anchored within the Gulf, accompanied by over 900 seafarers on board.
Safety concerns notwithstanding, the flag registry made no provisions to bar vessels from entering the area freely.
The decision to operate in the area ultimately rests with the shipowner, who should carefully weigh the risks involved before making a choice.
Capital Maritime & Trading Corp's CEO Evangelos Marinakis noted that his company narrowly avoided having ships in the Gulf at the onset of the conflict, which began on February 28.
He warned that if an incident occurred, taking on such a risk would not be feasible for them.
A fragile peace is being strained by renewed fighting,leaving thousands of sailors stranded as over 20,000 seafarers wait out the closure of the Hormuz Strait.
