Middle East Conflict: Strait of Hormuz Transits back to 90% below “Normal” - India Shipping News
LONDON:Clarksons Research, the data and analytics arm of theClarksons Group,continue to track and monitor shipping activity and markets impacted by theMiddle East conflict. Summarising their latest update. . .
LONDON:Clarksons Research, the data and analytics arm of theClarksons Group,continue to track and monitor shipping activity and markets impacted by theMiddle East conflict. Summarising their latest update issued Monday at 10. 00 am 20thJuly,Steve Gordon, Global Head of ClarksonsResearch commented:Strait of Hormuz transits back to 90% below “pre-conflict” levels, with an average of 12 crossings per day over the past 5 days, (Mar-May: 10, first week of July: 45, pre-conflict: 125)Across the weekend 18thand 19thJuly, transits remained limited (an average of ~12 transits per day)In tonnage terms, transits have now fallen to >95% below ‘pre-conflict’ levels in recent daysThe flow of energy leaving the Gulf continues to ease back, with an average of ~1. 5m bpd of crude passing through Hormuz over the past week (down from 10m bpd in early July and 15m bpd pre-conflict); no “mainstream” VLGCs have left the Gulf in 10 days while no laden Qatari LNG carriers appear to have transited the Strait in nearly 2 weeksShare of vessels passing “visibly” via the Oman route remains limited, accounting for 2% of all transits over the past 5 days, down from a 22% share in early JulyLast week saw the highest level of vessel attacks (5 in total) in the Middle East over the past 2 months, with further incidents reported over the past 24 hoursNumber of vessels waiting off Oman remains stable at elevated levels for now; ~385 vessels currently waiting off Oman, down 2% w-o-w but still 25% above start-June levelsAround 850 internationally trading vessels are currently in the Middle East Gulf, including 6% of VLCC, 3% of product tanker, 3% of LNG carrier capacityFor now, “energy” shipping markets remain elevated with alternatives, distance and disruption mitigating loss of volumeVLCC earnings are $128,000/day (+32% vs start-June), while Suezmax / Aframax earnings are up 63% / 68% over the same period to $148,000/day / $109,000/day though product tanker markets have been steadier (MR Clean: $25,000/day)Supportive arbitrage dynamics have again developed, boosting gas carrier rates (VLGCs re-bounding to $145,000/day, LNG rates steady at >2x pre-conflict)- Advertisement -