WASHINGTON: Shipowners are scrambling to understand the fine print in a ceasefire that could temporarily open up the Strait of Hormuz, hoping to take advantage of a potential window to extract more than 800 ships trapped in the Persian Gulf.
The near-closure of the vital waterway for weeks has created an unprecedented global energy supply crunch, as Iran tightened its control in the aftermath of United States and Israeli strikes.
Unable to guarantee the safety of thousands of seafarers and their cargoes after multiple attacks, vessels have instead been loitering on either side and traffic has slowed to a trickle.
Hours before a deadline set by US President Donald Trump ran out, the two sides on Tuesday agreed to a ceasefire in exchange for the reopening of Hormuz.
Details remain murky, though: Iran says it has agreed to two weeks of safe passage in coordination with its armed forces and within “technical limitations”, while Trump announced a “complete, immediate and safe opening”.
It is unclear if the two have settled on payments.
For shipowners, however, the news has been enough to prompt cautious optimism.
The Japanese Shipowners’ Association, a major industry group, was among those which said it would check the details of the US-Iran agreement before relaying information.
Most, however, warned that more clarity would be required for ships to move, and even in the best case flows would take time to resume.
In peacetime, some 135 ships transit daily, a figure that has shrunk dramatically.
“You don’t switch global shipping flows back on in 24 hours,” said Jennifer Parker, adjunct professor at the University of Western Australia Defence and Security Institute.
“Tanker owners, insurers and crews need to believe the risk has actually reduced – not just paused.”
Ships that transport energy make up a large part of the fleet that’s stuck inside the gulf, data from Kpler show. — Bloomberg
