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Maersk latest shipping firm to halt Gulf cargo bookings as Iran conflict pushes up insurance costs
Maersk halted most Gulf cargo bookings due to regional security risks, with exceptions for essential goods; around 20% of global oil passes through the Strait of Hormuz, analysts said.
- On March 5, Maersk suspended most new cargo bookings to and from the United Arab Emirates, Oman, Iraq, Kuwait, Qatar, Bahrain and parts of Saudi Arabia, marking major disruption to regional maritime trade.
- Military escalation involving Iran and IRGC declarations prompted insurers to cancel or sharply reprice war-risk cover after the IRGC claimed control over the Strait of Hormuz on March 5.
- Maersk said it will allow critical food and medicine requests case-by-case while general bookings are paused, as Mediterranean Shipping Co. declared an End of Voyage with a $800 surcharge and COSCO Shipping halted new Gulf bookings.
- The Strait of Hormuz carries roughly 20 percent of global crude and Gulf states import 85% of their food, prompting the US Development Finance Corporation to prepare federally-backed insurance guarantees.
- As an industry bellwether, Maersk's action positions others to follow and heightens contingency planning as the suspension remains under constant review amid serious security concerns, while shippers brace for volatility and the United States Navy may escort tankers `as soon as possible`.
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38 Articles
38 Articles
The Straits Times+2 Reposted by 2 other sources
Maersk suspends two shipping services due to Middle East crisis
COPENHAGEN, March 6 - Maersk, one of the world's biggest container shipping groups, said on Friday it has temporarily suspended two services linking the Middle East to Asia and Europe as the Iran conflict continues to disrupt global supply chains. Read more at straitstimes.com.
·Singapore
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Coverage Details
Total News Sources38
Leaning Left3Leaning Right8Center8Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
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