Trump plans insurance guarantees and naval escorts for Strait of Hormuz transits

 If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible.”

That announcement came as shipping through the Strait of Hormuz has reduced to a trickle, global oil and gas prices have increased, and as the UKMTO reported more incidents of attacks on ships in the conflict area — including an attack on a tanker 10 nautical miles east of Fujairah, UAE.

With details of the Trump proposal still to emerge, Jakob Larsen, BIMCO’s chief safety & security officer, commented:      “The announcement from U.S. President Donald Trump about selling “political risk insurance and guarantees for the Financial Security of all maritime trade, especially energy, traveling through the Gulf” has yet to be explained in full. Depending on the details of the proposal it might help tip the risk/reward ratio and stimulate more shipowners to resume operations in the high-threat area.

“Trump’s announcement that ‘If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,’ sounds interesting and we are awaiting further clarifications on how this would unfold.      ?Naval escorts would help reduce the threat for the ships being protected. That said, providing protection for all tankers operating in areas currently threatened by Iran is unrealistic as this would require a very high number of warships and other military assets.      “At some future point, if the Iranian threat has been degraded significantly, the relative effect of naval escorts will improve. This might push the security risk below the risk acceptance level of some shipowners and cause some ships to resume operations in the high-threat area.”

One of the first ships attacked in the wake of the Epic Storm strikes on Iran was the U.S,-flagged TSP program vessel Stena Imperative and yesterday American maritime unions said they “will continue to advocate for robust measures that ensure the safety of American crews and vessels during this period of heightened risk.”

A statement released by the unions [the American Maritime Officers (AMO), the American Radio Association (ARA), the Marine Engineers’ Beneficial Association (MEBA), the Marine Fireman’s Union (MFOW), the International Organization of Masters, Mates and Pilots (MM&P), the Seafarers International Union (SIU), and the Sailors Union of the Pacific (SUP)] said:      “For more than 250 years, the United States Merchant Marine has successfully delivered the cargoes essential to our nation’s economy, security, and global trade. Today, American mariners continue that proud tradition while operating in increasingly dangerous regions around the world.”“Our unions are working closely with vessel management, U.S. military leaders, and the federal government to safeguard American mariners operating in the Persian Gulf and throughout the Middle East. We remain committed to continued coordination with all stakeholders until the safety and security of U.S.-flag vessels and their civilian crews can be fully assured.”      “American mariners deserve the strongest possible protection as they carry out missions vital to our nation’s economic and strategic interests. We will continue to advocate for robust measures that ensure the safety of American crews and vessels during this period of heightened risk.”