Source: Fortune
Summary
Shipping companies are facing uncertainty and costs as the Strait of Hormuz remains closed due to the Iran war. Despite President Donald Trump’s “Project Freedom” aimed at guiding ships through the strait, only two ships have made the transit, and the effort has been paused. The risks for ships and crew remain high, with a cargo container ship operated by CMA CGM damaged in an attack. Insurance costs have increased, and most shippers have deemed the crossing too unsafe. Companies like Hapag-Lloyd and Maersk are weighing costs and risks, with Hapag-Lloyd estimating a weekly loss of $60 million.
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The numbers tell one story.
Trump’s “Project Freedom” has not eased the situation, with only two ships making the transit. The Strait of Hormuz remains a high-risk area, with Iranian speedboats and drones posing a threat. Shipping companies are facing significant costs, including increased insurance premiums. Hapag-Lloyd’s estimated weekly loss of $60 million is a significant blow. The situation is unlikely to return to normal until the risk of attacks recedes.
It’s still business as usual in the Strait of Hormuz – uncertainty and risk.
Author: Evan Null
