All articles tagged with #bimco
Trump floated a 20% cargo toll for ships transiting the Strait of Hormuz, a move shipping executives say could further reduce traffic through the waterway and is considered inappropriate for international waters; BIMCO warns the toll could disincentivize transit, the Strait’s traffic has already slowed, and there is no implemented plan despite renewed U.S. rhetoric.
The Trump team says the Strait of Hormuz will return to normal shipping within a month, but shipping analysts project only about 40% of prewar traffic in that timeframe, with full normalization not expected until well into 2027. Key concerns include mines, roughly 600 ships still trapped, ongoing tolls negotiations, and questions about how quickly tankers will re-enter the Gulf after demining.
President Trump asserted the Strait of Hormuz is reopened after a deal with Iran, but maritime trackers and industry officials say there’s little sign of normal traffic: roughly 220 tankers and about 500 ships remain trapped or moving only slowly, with insurers not yet resuming coverage. BIMCO warned that details on safe routes and mine-free passages are still unclear and the security situation remains volatile. Analysts expect it to take three to four months for traffic to normalize, as shipowners wait for broader assurances and for insurers to resume coverage. The oil market initially dipped on optimism, but actual transit levels have not recovered.
VP JD Vance says the U.S. expects the Strait of Hormuz to open toll-free long-term under a forthcoming U.S.–Iran deal, while Iran cites a 60-day toll-free window; details remain unclear and shipping groups warn the route remains risky and volatile despite some traffic resuming, with mines and transit protocols as key concerns.