Shipping traffic through critical Middle East trade routes experienced a noticeable slowdown on Thursday, according to tracking data from Kpler. Only seven commodity ships sailed along the Strait of Hormuz, representing half of the tally recorded on the previous day. This drop comes amid ongoing concerns regarding risks to regional shipping as U.S.-Iran peace talks remain in limbo.
A breakdown of the Kpler data shows that four ships entered the waterway, while three exited. Historically, the Strait of Hormuz handled nearly a fifth of global shipments of crude oil and liquefied natural gas prior to the conflict that began in February.
Thursday's transit figures revealed that the seven vessels did not include any very large crude carriers or liquefied natural gas tankers. However, the data did note that one very large gas carrier, transporting propane and butane, transited out of Hormuz via the Iranian route. Vessels operating with their transponders turned off are excluded from these tracking statistics.
A similar slowdown was observed at the Bab el-Mandeb strait on Thursday compared to the preceding two days. Commodity ships transiting the strait totaled 23, down from 34 on each of the previous two days. Out of these 23 vessels, 16 entered the waterway and seven exited.
Among the seven exits at the Bab el-Mandeb strait were two Suezmax tankers—identified as the Stoic Warrior and the Dokos—carrying crude oil bound for Vietnam and India, respectively. Similar to the Strait of Hormuz, no very large crude carriers or liquefied natural gas tankers passed through the Bab el-Mandeb strait on Thursday.
"The sharp decline in large crude carriers and LNG tankers transiting through the Strait of Hormuz and Bab el-Mandeb highlights the immediate vulnerability of global supply chains to geopolitical developments. For businesses dependent on international trade and energy commodities, prolonged uncertainty in key maritime corridors necessitates a proactive approach to risk management and logistics planning. Companies must closely monitor these disruptions to mitigate potential cost implications on raw materials and fuel." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
