Blockade squeezes freight

A naval exclusion around Iran has choked tanker access to the Gulf and pushed supertanker earnings sharply higher. (lloydslist.com) Very large crude carriers — the biggest oil tankers, usually carrying about 2 million barrels — have been hit hardest because Gulf transits collapsed while ships were forced to wait, reroute or ballast elsewhere. S&P Global said traffic through the Strait of Hormuz had fallen to a near-halt and Gulf crude exports and loadings were down sharply. (spglobal.com) Lloyd’s List reported that even a protected convoy system would restore tanker transits to less than 10% of normal volumes, with mines, narrow waters and limited naval assets still constraining traffic. Seatrade Maritime reported the U.S. blockade of Iranian ports took effect on April 13, 2026, after several Gulf-bound tankers had already aborted Hormuz transits. (lloydslist.com, seatrade-maritime.com) That squeeze shows up immediately in freight math. When fewer ships can load in the Gulf, charterers bid more aggressively for the vessels that remain available, and daily time-charter equivalent earnings jump even before more oil is delivered. (spglobal.com) The disruption also raises voyage costs beyond the headline freight rate. S&P Global reported that some owners were paying sharply higher additional war-risk premiums in the Persian Gulf, while ships idled in the Gulf or sailed longer routes with a heavier fuel bill. (spglobal.com) Lloyd’s List reported in March that war-risk quotes for some high-risk Gulf voyages had reached about 10% of hull value per trip, putting insurance costs in the double-digit millions of dollars for the most exposed ships. By late March, S&P Global said those premiums had eased from peak levels but were still elevated at around 1% of hull value for a seven-day period in the Gulf. (lloydslist.com, spglobal.com) Shipowners have not treated insurance as the only problem. S&P Global reported that owners were still reluctant to cross Hormuz because of crew safety concerns, and Lloyd’s List said some vessels trapped in the Gulf were skimping on war-risk cover because premiums had become unaffordable for idle ships. (spglobal.com, lloydslist.com) The market response has spread beyond the Gulf itself. Lloyd’s List said the Iranian coast blockade was lifting Red Sea crude loadings, while Seatrade Maritime reported that Yanbu loadings had surged as traders and shipowners looked for barrels that could move without a Hormuz transit. (lloydslist.com, seatrade-maritime.com) That leaves freight markets trading on access, not just oil demand. As long as Gulf transits stay far below normal and insurers keep pricing voyages for wartime risk, tanker earnings are likely to remain tied to security conditions as much as cargo volumes. (lloydslist.com, spglobal.com)