Since the Escalation of Tensions, Hormuz Vessel Transit Volume Sees Sharp Decline, Driving Up Shipping Costs

BlockBeats News, July 11th - Since the resurgence of tensions between the US and Iran earlier this week, the transit volume through the Strait of Hormuz has significantly decreased. According to Kpler data, the number of vessels transiting the strait dropped from 30 to 22 on Thursday compared to the previous day. On Tuesday local time, Iran targeted ships in the strait (including damage to a Qatari LNG carrier), leading to renewed clashes between the two sides. Since the mutual attacks on Tuesday, only two LNG carriers have entered the strait, with one exiting.

On June 17th, after the US and Iran signed an agreement to initiate talks to end the conflict, the transit volume had increased, peaked days later, and then the ceasefire was broken. Braemar LNG, a ship brokerage firm, stated in a client report on Friday that shipowners are adopting a cautious approach and have withdrawn available capacity from the region "until there is more clarity on the geopolitical situation." This action has reduced the number of available vessels, leading to increased transportation costs.