Jeremy Nixon, CEO of Ocean Network Express (ONE), said about 100 container ships are among roughly 750 vessels currently backed up near the Strait of Hormuz, equating to about 10% of the global container fleet. Maritime insurers have stopped underwriting transits through the Iran–Oman route after U.S. and Israeli strikes on Iran and Iran's retaliatory actions. The strait carries about one-fifth of global oil consumption and significant gas volumes, so the disruption could affect energy markets and shipping costs if it persists.
About 10% of Global Container Fleet Stranded Near Strait of Hormuz, ONE CEO Says
Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed
Container ships account for roughly 100 of the approximately 750 vessels currently backed up around the Strait of Hormuz, representing about 10% of the global container fleet, Jeremy Nixon, CEO of Ocean Network Express (ONE), said on Monday at a container-shipping industry conference in Long Beach, California.
"About 10% of the global container ship fleet is caught up in this," Nixon told delegates.
Maritime insurers have ceased underwriting voyages through the narrow strait between Iran and Oman after recent U.S. and Israeli strikes on Iran and Iran's subsequent retaliatory actions. The route carries roughly one-fifth of the world’s oil consumption and significant volumes of natural gas, making any sustained disruption important for global energy supplies and shipping lanes.
Shipping and logistics sources caution that prolonged delays or diversions could raise freight costs, create cargo bottlenecks and influence fuel markets, though the full impact will depend on how long insurers and carriers keep the route closed and whether alternative routes are used at scale.
Reporting: Lisa Baertlein. Editing: Mark Porter.
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