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Home»Business News»Traffic Grinds to a Halt in Strait of Hormuz Amid Rising Iran Tensions
Business News

Traffic Grinds to a Halt in Strait of Hormuz Amid Rising Iran Tensions

July 10, 20263 Mins Read
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Traffic in Strait of Hormuz Declines Amid Rising Tensions

SINGAPORE/TOKYO: Recent ship-tracking data indicates that liquefied natural gas (LNG) tankers have been navigating through the Strait of Hormuz. Since Tuesday, 22 vessels linked to Japan have departed from the Gulf, although overall traffic has decreased due to escalating tensions in the Middle East.

Shipping companies and governments are on high alert following recent attacks on commercial ships by Iran and subsequent U.S. military responses.

Data from maritime tracking services showed that at least five LNG tankers, empty and in ballast, have recently entered the strait. Among these are the GasLog Shanghai, operated by a Greek shipping company, and several carriers tied to QatarEnergy: Al Samriya, Al Dafna, Al Gattara, and Al Rayyan.

The latest analysis suggests that GasLog Shanghai and Al Rayyan likely entered the strait after being spotted just outside on July 9. The other QatarEnergy-linked vessels had last been tracked off the west coast of India several weeks back, with Al Samriya and Al Gattara last seen around mid-June and Al Dafna in late June.

Representatives from QatarEnergy and GasLog did not respond immediately to media inquiries.

On Thursday, the Very Large Crude Carrier Nissos Kea entered the strait, while another, the Lila Vadinar, exited.

Changes in Vessel Routing Amid Tensions

Xavier Tang, a senior market analyst at Vortexa, noted a shift in practices, stating, “Now, Iran seems to be targeting ships using the Omani route rather than all vessels, leading to more ships opting for the Iranian route or going dark while transiting.”

Challenges in Monitoring Ship Movements

Industry insiders reported that many ships are increasingly turning off their public AIS tracking devices, making it difficult to keep track of all vessels in the area. According to Kpler, LNG and oil tanker traffic fell to its lowest level since late June, with only 10 vessels crossing on Thursday, compared to 14 the day before and 22 earlier in the week.

Despite a brief increase in traffic recently, with peak levels reaching 40 ships daily since U.S. and Israeli airstrikes began in February, current numbers still lag behind the pre-conflict average of 125 to 140 daily sailings.

In light of the tanker attacks, some insurance companies are advising shipowners to pause their voyages, leading to a rise in war insurance costs.

Japan’s Maritime Presence in the Gulf Reduces

Japanese Transport Minister Yasushi Kaneko reported that 22 Japan-linked vessels, including six large oil tankers, exited the Strait of Hormuz between July 7 and 9. As a result, only four vessels remain in the Gulf. When asked about safety measures for these vessels, a ministry official declined to comment due to security concerns.

The number of Japan-linked vessels in the Gulf has significantly decreased from 45, representing around 1,100 crew members at the conflict’s outset, to just four vessels with about 100 crew members now.

Iran LNG tankers oil tanker Oil tanker traffic Strait of Hormuz tanker US and Iran US Iran ceasefire US Iran deal us iran war
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