THE closure of the Strait of Hormuz is a clear signal for all players to strengthen the shipping industry and maintain the logistics that keep goods moving, says the Malaysia Shipowners’ Association (Masa).
He says Masa has used all its platforms, including the National Economic Action Council, to raise awareness of the issue.
“Masa firmly believes that Malaysia must have a robust shipping sector, supported by the government. This is so that, should global shocks occur, Malaysia is well-positioned with its own ships to carry our strategic cargoes, whether import or export.”
Following the Malaysia Marine Department’s advisory in March to avoid Hormuz, Mohamed Safwan points out that Masa is ensuring full compliance to safeguard its members.
“While there are a few Malaysian-flagged vessels stranded in the Persian Gulf, Masa has received no information on other Malaysian-flagged vessels entering the area.
“Masa advocates for the safety of all seafarers, particularly those currently stranded in the waters around the Strait of Hormuz. Even though the energy crisis is ongoing, it pales in comparison with the safety and security of seafarers on board.”
For now, Mohamed Safwan says vessels are expected to reroute their voyages, which could lead to more ships calling at Malaysian ports. He says vessels serving Middle Eastern routes typically pass through Hormuz, while those navigating via the Cape of Good Hope – adding 10 to 14 days to the journey – usually operate along the East-West shipping lane and are opting to avoid the Suez Canal.
As more ships are expected to call at Malaysian ports, planning is essential to manage loading and discharge windows effectively, with constant communication between the shipper, the shipowner and the terminals or ports, he says.
The ongoing conflict is also driving up costs in an already expensive industry. When asked about the increase in war-risk insurance premiums – from 0.125% to 0.4% of a ship’s value per transit – Mohamed Safwan says Masa is working to help shipowners navigate the pressure.
“As an association, Masa is working with insurance associations to maintain open communication. As for costs, charterers are usually the ones who pay for the insurance. There is also mutual insurance called protection and indemnity, which is a prerequisite for all vessels regardless of flag.”
On ensuring supply chain continuity despite rising shipping costs, Mohamed Safwan says Masa members serving energy companies in Malaysia continue to meet charterers’ needs.
“The Transport Ministry has established a committee to plan and stay updated on developments in the current crisis. Masa is a member of this committee, joined by port operators and other shipping-related entities.
“ Masa members remain committed to supporting the continuity of the supply chain – not just for energy, but also for food security.”
