Shipping Company: The Hormuz Shipping Network Will Take 6 to 8 Weeks to Return to Normal

On ChainNews, the situation in the Middle East is still severely disrupting shipping and supply chains. As of now, around 1,000 vessels remain stuck in the region, and 6 of them belong to Hapag-Lloyd. None of the company’s ships have passed through the Strait of Hormuz. The additional weekly costs caused by the crisis are estimated at about $50 million to $60 million. The company said that we have no choice but to pass some of the costs on to customers. Although the ceasefire news is a positive development, our network will still need at least 6 to 8 weeks to return to normal. Even as the market is eager to celebrate the ceasefire announcement, local realities remain filled with many uncertainties. Moreover, it currently appears that a large number of merchant ships will still obviously remain cautious and unwilling to try to pass through the Strait of Hormuz. We may only see traffic increase from about 6–7 ships per day to roughly 10–20 ships. Even so, that is still far from the normal situation before the conflict broke out, when approximately 120–130 vessels passed through the strait each day. For now, the ceasefire news is the best outcome the market can hope for in its efforts to gain more time to ease tensions. However, this also seems to be exactly what it is at its core: just to buy time, with the expectation of eventually receiving more positive news. But until then, risk will always remain.