- To mull options when vessels, seafarers are under real risk or danger.
- ‘So far, we are continuing normal service, but very carefully.’
- No Israel-linked ships operating in Persian Gulf currently.
Japan’s Mitsui O.S.K. Lines (MOL), one of the world’s largest shipping companies and the leading operator of LNG carriers, is considering strategic adjustments to its shipping operations in the Persian Gulf amid escalating tensions between Iran and Israel, reports Platts.
The company is currently operating normally in the region, but with increased caution and enhanced safety protocols. MOL’s leadership has stated that the safety of crews and vessels is the top priority, and if the conflict intensifies, the company may reroute ships or modify schedules to avoid high-risk zones.
Mitigating Persian Gulf shipping risk
Although MOL currently has no vessels tied to Israeli operations in the Persian Gulf or near the Strait of Hormuz, the company has implemented internal alerts and contingency plans. These steps come in response to rising threats against ships flagged to or affiliated with nations perceived as supporting Israel. With MOL’s global fleet including crude oil tankers, chemical carriers, and LNG vessels, the company is monitoring the situation closely and preparing for possible disruptions.
The regional instability has already impacted global shipping trends. Freight rates for crude oil and clean product tankers have surged, and bookings from the Middle East to Asia have slowed. This is due to mounting concerns over the safety of transits through the Strait of Hormuz, one of the world’s most critical maritime chokepoints. Tanker operators and charterers are exercising greater caution, weighing route alternatives and cost implications.
Other shipping firms have taken more drastic steps, including suspending new charters through the Persian Gulf and moving existing vessels out of the region under naval escort. These developments suggest that the broader shipping industry is bracing for potential escalation and supply chain disruption.
Looking ahead, MOL and its industry peers may face difficult decisions about continuing operations in high-risk areas. Insurance premiums, rerouting costs, and geopolitical uncertainties will likely shape their next moves. The coming weeks will be pivotal in determining how energy transport routes adapt to the evolving security landscape in the Middle East.
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Source: Platts
