Gulf crisis strands 800 ships

At least 800 merchant ships have been left stranded in Gulf waters, with about 20,000 seafarers on board, as fighting tied to the Gulf and Red Sea crisis disrupts one of the world’s busiest energy and trade corridors, according to Gulf News and U.N.-linked reporting. Gulf News said the vessels have been stuck since fighting began on February 28, while U.N. News reported the International Maritime Organization was working with industry on contingency planning for ships and crews caught in the conflict zone. Navios Maritime Partners told investors on May 21 that the disruption has hit roughly 20% of global crude, refined-product and liquefied natural gas flows, tightening tanker supply and lifting freight rates. UAE authorities and logistics companies have responded by shifting cargo toward eastern ports and overland routes to keep trade moving. ### Why are so many ships stuck at once? The Strait of Hormuz handles about a fifth of the world’s oil and liquefied natural gas trade, and any closure or prolonged insecurity there can trap vessels on either side of the chokepoint. U.N. News said around 800 ships engaged in international trade could be involved in an evacuation scenario, while Gulf News reported that hundreds of merchant vessels have remained immobilized in Gulf waters for weeks. (gulfnews.com) Around 20,000 seafarers are directly exposed to the disruption, based on average crew sizes cited by U.N. News. Al Jazeera separately reported that roughly 20,000 seafarers were stranded in the Gulf amid the shutdown of normal transit through Hormuz. ### What is happening to crews and ships that cannot move? Gulf News reported that marine growth, extreme heat, crew fatigue and port bottlenecks are worsening conditions for ships held at anchor. (news.un.org) The report said barnacles and jellyfish accumulation are adding maintenance and operating problems for vessels delayed far beyond normal schedules. The International Maritime Organization is discussing contingency planning with the shipping industry, according to U.N. News. That planning includes a possible framework for safe evacuation if conditions deteriorate further for crews and vessels in the conflict zone. ### How much trade is being disrupted? Navios Maritime Partners said on its first-quarter earnings call that the crisis has affected about 20% of global crude, product and LNG flows. (gulfnews.com) The company said tanker availability has tightened and freight rates have risen as ships are displaced, delayed or rerouted around risk areas. (news.un.org) DHL said cargo is now being rerouted through India, Sri Lanka, Oman, Saudi Arabia and UAE east-coast ports, with containers sometimes reworked onto different carriers to avoid long delays at diversion ports. DHL said congestion, storage charges and detention costs are now among the biggest immediate risks for shippers. (finance.yahoo.com) ### Why are dry bulk and container markets also being hit? Higher fuel costs and longer sailing distances are spreading the disruption beyond oil and gas tankers, according to Navios Maritime Partners’ account of market conditions. The company said dry bulk and container trades are also being affected as operators absorb Red Sea diversions and higher bunker bills. (dhl.com) Gulf News reported that freight costs in some cases have risen four- to six-fold as shipping lines avoid traditional routes and crowd into alternative gateways. That has increased dependence on road transport and added pressure on inland logistics networks in the Gulf. ### How is the UAE trying to keep cargo moving? (finance.yahoo.com) Dubai Customs extended transit times and opened green corridors to ease the backlog, Gulf News reported on May 6. The report said the UAE was using emergency customs and logistics measures to move goods through eastern ports outside the Gulf, including Fujairah and Khor Fakkan. (gulfnews.com) Fujairah and Khor Fakkan have become critical fallback hubs because they have direct access to the Indian Ocean, according to reporting reproduced by maritime trade outlets. Inchcape Shipping Services said in an operational update dated May 22 that it was continuing to monitor port conditions across the region with twice-daily local intelligence updates. (gulfnews.com) ### What comes next for shipping companies and cargo owners? May 22 operational advisories from Inchcape and recent customer updates from DHL show carriers and freight forwarders still relying on diversions, port reworking and overland links while monitoring security conditions. The International Maritime Organization is continuing contingency discussions with industry, and Navios Maritime Partners has told investors that tanker availability and freight pricing remain exposed as long as the disruption affects Hormuz and Red Sea traffic. (thestar.com.my) (iss-shipping.com)