Middle East conflict slashes tanker traffic by 90%, idling 400 vessels and forcing major carriers to suspend transits, impacting global energy supply.
Conflict in the Middle East has cut tanker traffic through the Strait of Hormuz by about 90 percent, leaving around 400 vessels idle in the Gulf and forcing carriers including Maersk, MSC, Hapag-Lloyd, and CMA CGM to suspend transits, reports Fort Lauderdale's Maritime Executive.
Insurers quickly withdrew war risk cover, and freight rates swung wildly. The Strait normally moves one-fifth of the global oil supply, but volumes have collapsed, hitting importers in Asia and Europe and straining fast-growing African economies where demand for LPG and refined products is rising sharply.
Africa's port infrastructure has lagged behind demand, with most facilities limited to 10,000-15,000 DWT vessels. New deep-water terminals in Morocco, Senegal, and Nigeria will boost industrial corridors, but smaller ports still depend on frequent shipments that are costly when routes like Hormuz tighten.
Traders with flexible fleets are weathering the crisis better. Vitol, Trafigura, Glencore, and BGN Group have diversified vessel portfolios. Petredec tailored its LPG fleet to African port constraints, while BW LPG added mid-sized capacity. Geneva-based BGN partnered with HMM and Al Seer for new VLGCs while retaining smaller tonnage.
BGN Shipping Director Ozan Turgut said hybridized shipping helps meet energy demand in developing countries where ports cannot handle larger vessels. NYK's dual-fuel VLGC Lucent Pathfinder, chartered by BGN, adds sustainable capacity. Former US maritime commissioner Rob Quartel warned that Western oil dependence is a strategic liability.
Analysts say coastal redistribution using battery-electric vessels could be cost-effective for short African routes, though charging infrastructure is lacking. Digital systems are also advancing, with Arcadia ECS developing AI tools to secure and optimize ports and energy facilities.
The hybrid model of large vessels for deep-water terminals, mid-sized ships for legacy ports, and electrified feeders for coastal redistribution is becoming essential. The Hormuz crisis underscores the risks for fast-growing energy importers without diversified shipping capacity.
