Three ammonia ships stranded in Hormuz as traffic halts: CAS, shipbrokers

Three ships carrying ammonia were stuck in the Western part of the Strait of Hormuz as of March 4, S&P Global Commodities at Sea data shows, and ammonia shipbrokers said shipments are unlikely to resume through the region even with US guarantees of insurance and an escort.

The ships in the Strait are the 25,000-metric ton Green One, the 26,000 mt Eco Oracle and the 25,000 mt Searambler, the CAS data shows.

The first two ships loaded from Saudi Arabia and Qatar for delivery to India, CAS data shows, while the Searambler recently exited dry dock in Bahrain.

Although US President Donald Trump pledged to provide political risk insurance and potential naval escorts for ships transiting the Strait of Hormuz on March 3, ammonia shipbrokers doubted the ships would be able to leave the region.

Shipbrokers told Platts the White House plan is unlikely to render immediate effects, as ships' insurance are currently being canceled, and ship movement through the region is severely disrupted amid the escalating conflict.

The Green One and Eco Oracle were "waiting for an opportunity to get out," a shipbroker said.

A second shipbroker said they were unsure how the US President's promise would affect traffic, while a third said the plan was "high risk."

The Searambler had been moved away from Ras Al Khair port and left unloaded per a decision of the ship's owner, the first shipbroker said.

This comes as four ammonia market participants reported Saudi ammonia producer Saudi Basic Industries Corp. was searching on March 3 for a ship to load an ammonia cargo at Jubail, but without success due to the inability to sail through the Strait of Hormuz.

Sabic did not respond to a request for comment.

A shortage of ammonia ships was already affecting the global market as several ships switched trades to capitalize on the booming LPG market. The US also sanctioned five ammonia carriers linked to Iranian-origin ammonia in two rounds on Feb. 6 and Feb. 25.

Platts, part of S&P Global Energy, assessed the ammonia FOB market in the Middle East at $505/mt on March 4, $30/mt up from Feb. 27.