The Strait of Hormuz remains closed, with shipping executives unwilling to send cargo ships through the 21-mile channel until the United States and Iran strike a peace agreement.
President Donald Trump has said the strait’s reopening is imminent, but most executives remain skeptical.
Only seven ships passed through the strait on Friday — five entering and two exiting, according to the report.
20% of the world’s oil supply is cut off from global markets due to the strait’s closure.
Oil prices fell last week on hopes of an agreement to reopen the strait, but oil futures shot up Monday following renewed fighting in the region.
Research firm Kpler notes that traffic through the strait remains exceptionally depleted, with only a handful of tankers crossing each day.
Matt Smith, director of commodity research at Kpler, said the strait remains essentially closed.
Industry officials do not believe the limited number of successful transits will make a significant difference to global markets.
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Gene Seroka, executive director of the Port of Los Angeles, said it will take more than a limited number of successful transits to restore confidence.
Efforts to have the US military guide commercial vessels out of the strait through Project Freedom proved to be short-lived.
A spokesperson for US Central Command said that despite reports of new naval escorts, US forces are not escorting commercial ships.
Industry sources confirm it will take time for normal traffic to resume, citing the significant threat to ships crossing the Strait.
A cargo vessel traveling in the northern Persian Gulf was struck by an unknown projectile on Monday, according to a British military-run maritime security organization.
There have been 39 vessel strikes in the region and 11 deaths since the war began.
Container ships that deliver food and other goods to Gulf states have been trapped by the strait’s closure, with Maersk having not had a ship leave since mid-May.
Shipping industry sources said it is critical that no restrictions or fees be imposed on ships once the strait reopens.
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Arsenio Dominguez, secretary general of the International Maritime Organization, said the industry must work together to put the safety of seafarers first.
Rates for shipping in the rest of the world have already jumped due to the disruptions, with Heidmar reporting a more than 200% increase in revenue in the first quarter of this year.
Chevron CEO Mike Wirth said it will take time to restore confidence shaken by the war, and that ship owners have to be comfortable sending crews back after being trapped for months.
Shipping Industry Impact
The strait’s closure has had a significant impact on the shipping industry, with many ships being rerouted or delayed, resulting in increased costs for shipping companies and delays in the delivery of goods.
The US Energy Information Administration notes that the strait’s closure has affected global oil markets, with oil prices increasing due to the reduced supply from the region, where a significant portion of the world’s oil is tied to cost-cutting.
Restoring confidence in the shipping industry will be key to getting ships back on the water, requiring a combination of efforts from governments, shipping companies, and other stakeholders.
It’s a complex issue.
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