Global Shipowners Sound Alarm Over Rising Gulf Risks

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The Strait of Hormuz, one of the world’s most vital maritime corridors, is entering a period of renewed instability as threats to commercial vessels around the Arabian Peninsula intensify. A recent warning by BIMCO, the world’s largest shipowners’ organization, highlights the severity of the situation. From limpet mines to cyberattacks, the threat matrix has expanded beyond traditional warfare.

Shipping companies and insurers are responding with caution. As physical risks grow, economic and operational pressures are increasing. Dryad Global, a maritime intelligence firm, reports a significant drop in cargo vessel traffic through the Strait, declining from 147 transits on June 9 to 111 by June 15. This reduction reflects increasing concern by operators, some of whom are rerouting or delaying voyages.

A critical chokepoint for nearly 20 percent of the world’s traded oil, the Strait of Hormuz has again become a focus of geopolitical tension. With the Iranian parliament recently voting to authorize closure of the Strait pending Supreme Council approval, the situation could escalate quickly.

Ship traffic dips and insurance premiums spike as risk perception changes

The financial consequences are growing. Insurers are reacting to the deteriorating risk profile with sharp premium hikes. Hull and machinery premiums have jumped from 0.125 percent to 0.2 percent of a vessel’s value. For a tanker worth $100 million, this raises costs from $125,000 to $200,000 per voyage.

These added costs are reshaping how shipping companies operate. Some owners are choosing to withdraw from the area, wait for military escorts, or reassess risk before allowing vessels to enter. The resulting delays are adding to the inefficiencies affecting global supply chains.

Tactical shifts among shipowners reveal industry alarm

Frontline, a global tanker operator, offers a telling case. The company has halted new contracts for transits through the Strait of Hormuz and is working to extract existing vessels with military protection. A spokesperson said the decision was based on both crew safety and rising inefficiencies and premiums.

This strategic move signals a broader shift in risk management. Some shipowners are exploring alternative insurance or diverting traffic through longer routes such as around the Cape of Good Hope.

Threat landscape broadens

What distinguishes the current situation is the variety of threats. Drones and missile strikes now accompany electronic warfare, including GPS jamming and AIS spoofing. These tactics can mislead ships, create confusion, or expose them to seizure or collision.

Recent reports cite actors near the port of Bandar Abbas conducting opportunistic seizures. Limpet and floating mines have been observed in busy shipping lanes, raising concerns even among naval escorts. This is an evolution in maritime conflict, combining digital and physical domains.

Iran’s threat to close Hormuz and Houthi aggression

The Iranian parliament’s vote to close the Strait represents a new political flashpoint. Final approval is pending, but the message to global markets is clear. Iran has linked the potential closure to US pressure on its nuclear program, suggesting potential escalation.

Meanwhile, Houthi-led attacks in the Red Sea continue to disrupt shipping near the Bab el-Mandeb Strait. Military operations like Prosperity Guardian and Aspides aim to protect traffic, but these efforts have not fully prevented attacks. This dual threat complicates regional shipping security.

The crisis extends beyond economics and politics. On June 17, two tankers, ADALYNN and Front Eagle, collided near the Strait, causing fires and an oil spill that contaminated more than 1,500 hectares. Preliminary assessments suggest the collision may have been worsened by electronic spoofing.

The environmental and strategic toll of such incidents is considerable. As insurers grow more selective and regional traffic falls, the long-term viability of the Arabian Peninsula as a major shipping corridor is in question. Industry leaders are calling for coordinated naval responses and cybersecurity protocols.

Sources:

• CNBC