Industry Weighs Risk to Seafarers, Balance Sheets in Hormuz Transits

As the security situation in the Gulf region remains dangerous for vessel transits, industry voices differ on the question of whether vessels should stay out of the Strait of Hormuz for reasons of seafarer safety. 

Transits of the strait are under direct threat from Iran, which has demonstrated a capability to hit vessels that attempt to make the run. Even if past the strait and inside the Gulf, all inbound merchant ships remain within targeting distance and vulnerable to Iranian attack, from Kuwait to Dubai.

Blue-chip operators like Maersk and CMA CGM have cast their votes in favor of prudence and suspended calls in the Gulf region, thereby eliminating war risk for their seagoing personnel (except those already west of Hormuz). On the other end of the spectrum, a handful of owners are asking their captains to make transits in and out, some while transmitting their positions. 

To be sure, seafarers have agency of their own. Under IBF rules, crewmembers have a right to be informed of combat-zone hazards and a right to request repatriation - a request with its own professional risks.

So far, industry bodies have recommended owners to weigh and manage the war risks, not to avoid them - consistent with the varying opinions and business models of international shipowners. For VLCC owners, Mideast transits are now more lucrative than at any point in industry history. If the risk to crew is acceptable, a single voyage could pay for a third of the price of the ship.

"Seafarers continue to operate in a complex and uncertain environment, and their safety and wellbeing must remain a priority," said Intertanko and OCIMF in a joint statement Thursday. "Operational decisions should be based on thorough, company-led due diligence and comprehensive risk assessments . . . [and] the human element should be considered in decision-making."

The International Chamber of Shipping, which represents vessels of all classes, expressed concern and emphasized the obligation of nation-states to ensure safety. 

"By no fault of their own, [seafarers'] lives are now tragically at risk. We call on all states to take the fundamental steps to ensure their safety," ICS' leadership said in a statement. "Freedom of navigation is crucial to global trade. All states must ensure the safe passage of merchant vessels, prioritizing the safety and welfare of the crew on board."     Bottom of Form

Some observers have called for private parties to take their own actions to ensure safety for crew. 

"Stop trying to pass the Strait of Hormuz!" implored EOS Risk Group's Martin Kelly in a message Wednesday. "There have been at least 10 attacks against shipping n 72 hours. At least one person dead, and at least one ship abandoned.  . . . Please, defer transit."