Weight of Freight: Rising role on Insurance in maritime
Weight of Freight: Rising role on Insurance in maritime
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Key topics covered in the podcast:
- Rising tensions in the Red Sea prompted LR tanker freight rates to spike in early January
- How are rates faring now, and how is insurance moulding freight in the region?
- Impact of Cargo Insurance market
- How ‘The Polar” case ruling limits shipowner’s right to refuse Red Sea voyages
Related news
Japan moves to revive domestic LNG shipbuilding
Japan moves to revive domestic LNG shipbuilding
Osaka, 28 August (Argus) — Japan has begun a full-fledged effort to revive domestic LNG shipbuilding to bolster its economic and energy security, on expectations that demand for the fuel will remain firm through the transition to net-zero by 2050. Japan has not built an LNG carrier domestically since 2019, because intensifying competition such as from South Korea and China eroded the industry's competitiveness. But maintaining the capability to build such vessels is increasingly seen as strategically important, given concerns that resource-poor Japan could struggle to secure shipping capacity to transport fuels in the event of a crisis. The ministry of land, infrastructure, transport and tourism (Mlit) on 21 August convened shipbuilders, shipping companies, other government agencies and the country's largest LNG importer Jera for talks on reviving domestic LNG carrier construction. Participants agreed to work together toward that goal, with the shipbuilding industry expressing its commitment to establishing self-sustaining construction capability. The talks came after the government incorporated domestic LNG carrier construction into its growth strategy for 17 strategic sectors, which was approved by the Cabinet on 21 July. The plan calls for Japan to build three to five LNG vessels a year from 2035 onward, while strategically leveraging shipbuilding know-how and capabilities held by like-minded countries, such as South Korea, which has extensive experience in building membrane-type LNG carriers, the dominant vessel type in the global market. To advance the initiative, Mlit confirmed that it will work with industry stakeholders to clarify the number of vessels to be ordered, construction schedules, required capital investments and costs, while fleshing out support measures and institutional frameworks, including financial assistance. It remains unclear how much budgetary support the government will provide, with industry participants calling for the project to be treated as a national initiative and for measures to address the substantial cost gap with rival shipbuilding nations. Balancing role Japan is stepping up efforts to strengthen LNG security across its supply chain, given the country's gas demand almost entirely depends on imports. LNG is expected to continue playing a vital role in maintaining a stable power supply while the share of weather-dependent renewable energy rises and the role of nuclear power remains uncertain due to safety concerns. Electricity demand is also projected to increase, driven by the growing use of artificial intelligence. That said, LNG is expected to increasingly serve as a balancing power source, making it unclear whether Japan's domestic LNG demand will continue to grow. The outlook will largely depend on progress in restarting existing nuclear reactors, developing next-generation reactors and expanding renewable power capacity. This underscores the need for greater flexibility in LNG procurement, including access to an adequate fleet of LNG carriers, because importers may need to divert or sell excess cargoes overseas in response to shifts in domestic demand. Japanese firms currently handle 100mn t/yr of LNG, well above domestic demand of 65mn t/yr. Some of this is used to generate profits through LNG trading abroad, but these volumes could be redirected to the domestic market if needed, providing a form of supply security distinct from strategic stockpiling, an official at the trade and industry ministry Meti said previously. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Hormuz traffic constrained despite Oman-Iran talks
Hormuz traffic constrained despite Oman-Iran talks
New York, 27 August (Argus) — Commercial vessel traffic through the strait of Hormuz remained severely constrained on 26 August with Iran continuing to attack vessels in the waterway while joint Iranian-Omani talks on managing ship traffic continue. A total of 12 vessels transited through the strait of Hormuz on 26 August, split between seven outbound transits — including five tankers — and five inbound transits, including two tankers, according to data from maritime security firm Windward. The transits occurred mostly on the northern Iranian-preferred lane. This puts vessel traffic through the strait just under 10pc of the normal traffic levels prior to the 28 February US-Israel attack on Iran that prompted Iran to declare the waterway closed. Iran attacked Kuwait's state-owned oil products tanker the Al Salam II on 26 August while it was attempting to exit the strait of Hormuz, data from the UK Maritime Trade Organization (UKMTO) shows, likely through the US-assisted southern traffic lane. Two Indian-flagged cargo vessels exited the strait on the southern lane, and the tanker Sela exited through an unconfirmed lane, with all remaining transits taking place on the northern lane. Windward tracked a US Treasury-sanctioned medium range product tanker crossing the strait of Hormuz outbound, loaded with an estimated 185,000 bl of Iranian fuel oil, Kpler data shows, with the vessel signaling Oman as its next destination. The tanker is flying a false Nicaraguan flag, data from the International Maritime Organization shows, which is illegal under international law. Data from vessel information firm TankerTrackers.com shows that around 3.7mn b/d have been getting through the strait of Hormuz on average over the last seven days, while data from vessel tracking firm Vortexa places the monthly average for August for the strait around 3.5mn b/d — both significantly lower than the 10mn b/d claimed by US officials . Prior to the joint US-Israeli attacks on Iran which prompted Iran to declare the strait of Hormuz closed, around 23mn b/d of crude, refined products and natural gas flowed through the narrow waterway on average, data from Vortexa show. The US Central Command, which oversees US forces in the Middle East, claimed in a UKMTO notice that the US facilitated 37 vessel transits through the strait of Hormuz on 25-26 August, a figure which was much lower than publicly available information shows and that could not be corroborated independently. Centcom did not respond to request for comment from Argus to provide additional details on the transits. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
VLGC reroutes around S America to avoid canal
VLGC reroutes around S America to avoid canal
New York, 27 August (Argus) — A very large gas carrier (VLGC) returning to Houston from the Asia-Pacific region has opted to travel around South America instead of taking the significantly shorter route through the increasingly expensive Panama Canal, vessel tracking data show. The VLGC Gas Scorpio was traveling empty from China toward the Panama Canal initially, and appeared to have entered the anchorage area vessels use prior to transit in mid-August, according to Vortexa data. But the ship began to move south on 21 August along the west coast of South America with its destination still set to Houston, likely adding around 20 days of voyage time to the journey alongside potential strait of Magellan pilotage fees. When the vessel first arrived at the Panama Canal the Argus -assessed average price at auction for the Neopanamax locks that handle larger vessels like VLGCs was at $2.3mn. But on 26 August that price hit an all-time high of $3.1mn on steep competition for transit slots at the increasingly drought-afflicted waterway. At least one buyer paid as high as $5.26mn for a single auction slot. The Panama Canal Authority added restrictions on transit slots, including reduced Neopanamax daily transits, after El Nino weather conditions led to below-average precipitation during this summer's rainy season, further complicating the flow of cargoes. The Gas Scorpio was scheduled to load another LPG cargo on 25 August in the US Gulf coast after charterer Saudi Arabia ATC fixed the vessel in mid-July for another Houston to Chiba, Japan, voyage at $235/t.The vessel is now scheduled to arrive in the US in the second half of September. Rerouting could boost VLGC freight Avoiding the Panama Canal keeps ships off the spot market for extended periods, contributing to a shortfall of available VLGCs and potentially boosting freight rates. The rate for a Houston-Chiba VLGC voyage stood at $274/t on 26 August, Argus data show, 20pc below its all-time high of $345/t on 22 May on shifting trade flows after the closure of the strait of Hormuz by Iran. The Strait of Magellan, which runs for around 350 miles around southern Chile and Argentina can be an undesirable alternative to the Panama Canal for shippers given severe weather conditions. Other vessels sailing round-trip between Asia and the US Gulf coast are increasingly utilizing the Cape of Good Hope route, which also adds around 20 days of voyage time. But some charterers are paying premiums for smaller VLGCs specifically designed to fit the older and smaller Panamax locks. The average auction price via these locks hit $690,000 on 24 August, nearly 4.5 times less costly than the Neopanamax locks on the same day. By Delfina Marchese Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran-Oman framework to reshape Hormuz routes
Iran-Oman framework to reshape Hormuz routes
London, 26 August (Argus) — Iran says a proposed framework being developed with Oman would introduce new shipping routes through the strait of Hormuz and close the current southern route along the Omani coast. Deputy foreign minister Kazem Gharibabadi told state television late on 25 August that the interim arrangement would route vessels entering the Mideast Gulf through Iranian waters, while the outbound leg would pass through both Iranian and Omani territorial waters. "The southern lane will be closed," Gharibabadi said, without giving a timeframe. The replacement route would be temporary, with Iran and Oman then holding talks "on a new permanent route within 30-60 days", he said. His comments followed a joint Iranian-Omani statement outlining the framework for managing traffic through Hormuz, which would also include a joint mine-clearance project. "Technical negotiations will continue with the aim of reaching an agreement on a permanent maritime corridor, the future administration of the strait, as well as mechanisms for information exchange, traffic management and the provision of maritime security services," the statement said. Gharibabadi said the talks were intended to establish "new routes and new corridors" to replace those used for the past 58 years. Before the US-Iran war, vessels transited Hormuz through the internationally recognised traffic separation scheme adopted by the International Maritime Organization (IMO) in 1968. Since the conflict began following US and Israeli strikes on Iran on 28 February, traffic has largely been divided between a northern route along the Iranian coast and the southern route along the Omani coast. For months, Iran has demanded that vessels use the northern route in co-ordination with Iranian authorities. Tehran says the pre-war route through the IMO traffic separation scheme and the southern route are unsafe because of uncleared naval mines. It also says use of the southern route breaches the terms of a ceasefire agreement reached with the US in June, which has since expired. Tehran has targeted selected vessels attempting to use the southern route. It also announced at the weekend that vessels crossing the strait without first co-ordinating with Iranian authorities would be blacklisted. No imminent reopening Gharibabadi said the discussions with Oman were critical but would not by themselves lead to a full reopening of the strait. Iranian officials have said a full reopening would depend on Washington acknowledging what Tehran describes as past missteps and meeting commitments under the now-defunct memorandum of understanding. Iran says those commitments include lifting sanctions, releasing Iranian funds frozen under the sanctions and ending what it describes as a US naval blockade. Tehran is also demanding an end to Israeli strikes on Lebanon and US strikes against Iranian-aligned groups in the Mideast Gulf. Traffic remains at a trickle. Maritime security firm Windward recorded four vessels entering Hormuz on 24 August and none exiting, putting traffic at around 3pc of pre-war levels. Three of the four vessels used the northern route and one used the southern route. The US maintains that it controls the strait and that vessels continue to transit the waterway. US energy secretary Chris Wright said earlier this month that an average of 9mn b/d of oil had exited Hormuz over a seven-day period. Iranian officials and many market participants have questioned that figure. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
