Shipping groups want mines cleared, TSS restored for normal Hormuz traffic

Maritime traffic via the Strait of Hormuz will only return to normal levels when mines are removed and traditional routes restored, some of the world's largest shipping organizations said June 18 while calling for more clarity on transit rules and coordination among authorities to allow safe passage.

Iran has warned of mine risks for transiting via the Traffic Separation Scheme routes while agreeing to demine the strait within 30 days in its preliminary peace agreement with the US, signed by both countries' leaders June 17.

In a statement, INTERTANKO said clearing the TSS routes of all mine threats "must be a priority," and all governments involved need to clearly communicate with the shipping industry upon completion.

"Some ships will, of course, start to move. That will be natural. But shipowners have adopted a very cautious approach," said Tim Wilkins, managing director of INTERTANKO, which represents 191 companies that own and operate 4,152 tankers with a total carrying capacity of 380 million deadweight tons.

"The safety and security of seafarers have been uppermost in their minds," according to Wilkins.

S&P Global Commodities at Sea data showed 25 ships crossed the Strait of Hormuz on June 17, including three VLCCs, three product tankers and one small tanker.

The total number of transits was the highest in a month but still much lower than levels seen before the US-Iran war broke out Feb. 28. On average, 135 ships a day, including 46-47 oil tankers, used the Hormuz waterway -- which handled 20% of global oil and LNG trades -- in February.

"Once safe and secure passage through the strait has been confirmed, ships already in the Persian Gulf can begin re-establishing trade," said Niels Rasmussen, chief shipping analyst at BIMCO, the world's largest shipowners' organization by direct membership across various sectors. "This includes more than 100 laden tankers as well as nearly 100 in ballast which could start loading new cargo.

"Within a couple of months, shipping services could return to pre-war levels. However, a recovery in cargo volumes may take longer due to damages sustained during the war, potentially delaying the rebound."

Secretary-general of the Iran Shipping and Related Services Association, Masoud Polmeh, told state-run students news agency ISNA that Hormuz remains under the supervision of Iranian armed forces and ships should transit after coordinating with relevant authorities.

Routings

Currently, Iran has allowed some ships to sail through Hormuz via the Iranian coast, while the US navy has been advising vessels to sail close to the Omani shore in dark transits.

"The central part of the strait is mined and un-navigable, and only the inshore traffic zones close to Oman and Iran are reportedly free of mines," BIMCO's chief safety officer Jakob Larsen said while warning of congestion and navigational risks in the Iranian and Omani routes.

Based on INTERTANKO's estimates, the current routes might need to be used before the TSS are cleared of mines, but their capacity is inefficient.

"If 550 ships are aiming to leave and a likely 60 ships per day would look to transit the Strait of Hormuz, then the existing routes are inadequate to handle this," INTERTANKO said.

Both organizations said a coordination system should be established to ensure safe transits before normal traffic can resume.

"BIMCO expects an international coordination body to be established shortly to facilitate transits," said Larsen, adding that issues related to safe routes, measures to separate traffic, naval protection, among others, remain unresolved.

"To avoid serious risks associated with an uncoordinated mass transit through the narrow inshore traffic zones, we encourage shipowners to consider waiting for further clarification," he added.

In a statement, International Maritime Organization Secretary-General Arsenio Dominguez said the UN agency is working with coastal states and industry groups to evacuate the seafarers aboard ships stranded in the Persian Gulf.

"The process must be safe, orderly, and coordinated to avoid congestion, accidents and collisions," Dominguez added. "We are also gathering necessary security guarantees -- to ensure that all transits will be free from any hazards, including potential mines."