US Coast Guard to assess port infrastructure risks

Spanish Market: Freight
20/05/24

Federal officials will conduct a study of US port infrastructure safety nearly two months after a massive containership brought down the Francis Scott Key Bridge at the Port of Baltimore.

The US Coast Guard (USGC), along with the Ports and Waterways Safety Board of Inquiry, will study 10 US ports to evaluate the risks of increased traffic and large commercial vessels on infrastructure like bridges, railways, pipelines, cargo terminals and power plants. A report on risk mitigation strategies and practices will be issued by the board and finalized by 31 May 2025.

The study could help avoid accidents like the one in Baltimore that killed six and curtailed traffic in and out of the harbor since 26 March, effecting markets for metals, biofuels, coal, organic agriculture, petcoke and other products.

The containership that struck the bridge was removed from the accident site on Monday, allowing commercial vessel traffic to resume. The port is expected to fully reopen by the end of May.

By Meghan Yoyotte

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16/06/25

VLCC rates jump on Mideast Gulf disruptions

London, 16 June (Argus) — Freight rates for very large crude carriers (VLCC)in the Mideast Gulf soared today to the highest since the start of May, as the escalating conflict between Israel and Iran creates significant turbulence in the shipping market. Rates were near a 2025-low as recently as 12 June, the day before the conflict began. Violence continued over the weekend, including a strike on Israel's 197,000 b/d Haifa refinery and against gas treatment facilities in southern Iran. Shipowners have become increasingly reluctant to operate in the Mideast Gulf and there are indications that marine insurers are considering implementing an additional war risk premium (AWRP) in the coming days. This would lead to significantly higher freight costs. The shortage of willing shipowners has driven the Mideast Gulf to east Asia rate, the bellwether VLCC route, up by nearly 60pc, to WS67.5 or $15.78/t today from WS44 or $10.28/t on Thursday, 12 June. In addition to rising rates, vessel speeds throughout the Mideast Gulf region appear to be slowing as shipowners hesitate before committing to a booking. Fixing activity has been minimal, with shipowners reluctant to commit to any deal within the Mideast Gulf evem at higher rates. Charterers have made at least eight VLCC cargoes available and all are struggling to find a tanker. But rising rates could make shipowners increasingly likely to commit to bookings, and so fixing activity could resume shortly. VLCC markets in other regions are surging as well, as charterers hike their bids to pull shipowners away from the Mideast Gulf market. A charterer in Brazil wrapped up a fixture at WS62, considerably higher than previous market conditions. The market has been certainly been inflated by concerns around the Israel-Iran conflict and a ceasefire would probably drop the cost of freight back to previous levels. During previous flare ups of tension, the VLCC market has usually firmed rapidly in the early stages but then quickly declined once a ceasefire is declared. By John Ollett and Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

VLCC rates up 25pc after Israeli strike on Iran: Update

13/06/25

VLCC rates up 25pc after Israeli strike on Iran: Update

Adds daily rate change in second paragraph London, 13 June (Argus) — The cost of freight for Mideast Gulf-origin very large crude carrier (VLCC) voyages rose by 25pc today after Israeli air and missile strikes hit Iran in the early hours. The key Mideast Gulf to China route rose to $12.85/t from $10.28/t. The VLCC market is exposed to volatility as around 65pc of all shipments in that class are from the Mideast Gulf. In October 2024, when Iran launched more than 200 missiles against Israel, the Argus- assessed rate for the Mideast Gulf to China route increased by more than 13pc, to $14.10/t, in three days. So far it appears there is no disruption to oil flows through the Mideast Gulf and the strait of Hormuz, and remains unclear as Iran's oil infrastructure was unscathed by the Israeli air and missile strikes according to Iran's state news agency Irna and Argus sources. But some shipowners have become increasingly cautious of the region, with some market participants suggesting more risk-averse owners might avoid the area until the conflict de-escalates. This could encourage some owners to increase their offers as the risk of transiting the area mounts, and discourage some from visiting the region at all. Charterers made multiple cargoes available to the Mideast Gulf market today, but most remained unfixed. But the rise in crude prices today — front month Ice Brent is trading around 5.5pc higher having rise as much as 13pc earlier — could discourage China, the largest importer of Mideast Gulf grades, from purchasing more crude. This could curtail any jump in freight rates and perhaps create a ceiling to cap the increase. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

VLCC rates exposed to disruption after Israeli strike

13/06/25

VLCC rates exposed to disruption after Israeli strike

London, 13 June (Argus) — The cost of freight for Mideast Gulf-origin very large crude carrier (VLCC) voyages could increase after Israeli air and missile strikes hit Iran in the early hours of today, 13 June. The VLCC market is exposed to volatility as around 65pc of all shipments in that class are from the Mideast Gulf. In October 2024, when Iran launched more than 200 missiles against Israel, the Argus- assessed rate for the Mideast Gulf to China route increased by more than 13pc, to $14.10/t, in three days. So far is appears there is no disruption to oil flows through the Mideast Gulf and the strait of Hormuz, and remains unclear as Iran's oil infrastructure was unscathed by the Israeli air and missile strikes according to Iran's state news agency Irna and Argus sources. But some shipowners have become increasingly cautious of the region, with some market participants suggesting more risk-averse owners might avoid the area until the conflict de-escalates. This could encourage some owners to increase their offers as the risk of transiting the area mounts, and discourage some from visiting the region at all. Charterers made multiple cargoes available to the Mideast Gulf market today, but most remained unfixed. But the rise in crude prices today — front month Ice Brent is trading around 5.5pc higher having rise as much as 13pc earlier — could discourage China, the largest importer of Mideast Gulf grades, from purchasing more crude. This could curtail any jump in freight rates and perhaps create a ceiling to cap the increase. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Strikes raise risk to Mideast diesel, naphtha flows

13/06/25

Strikes raise risk to Mideast diesel, naphtha flows

London, 13 June (Argus) — Israeli missile strikes on Iran in the early hours of Friday have heightened the risk of disruption to clean tanker shipping from the Mideast Gulf, particularly for diesel heading to Europe and naphtha bound for east Asia. Around a fifth of Long Range (LR) vessels and 7pc of the Medium Range and Handysize trading fleet are located in the Mideast Gulf at any given time. The region is the main supplier of diesel to Europe and a key source of naphtha for east Asia. Several shipowners said they will be more cautious about booking cargoes from the region, especially if the conflict deepens. Some market participants suggested regional freight rates could spike to levels seen after the start of the war in Ukraine in 2022 or the first Houthi attacks in the Red Sea in 2023. During a similar flare-up between Iran and Israel in April last year, freight rates rose as fewer shipowners were willing to transit the strait of Hormuz. Long Range 2 (LR2) rates from the Mideast Gulf to the UK Continent peaked at a lump sum of $6.4mn on 18 April, up from $4.8mn a week earlier. Long Range 1 (LR1) rates also climbed, reaching $4.9mn by 26 April from $4.2mn on 12 April. Medium Range rates surged to $3.75mn on 26 April, up from $3.1mn on 5 April The usual summer slowdown in freight rates may temper a similar spike this time. But if hostilities intensify, more shipowners are likely to avoid loading in the Mideast Gulf. The region is one of the world's largest exporters of refined products, with around 3mn b/d of the global 25mn b/d of seaborne oil product exports passing through the strait of Hormuz. A loss of oil product supply from the Mideast Gulf would push key importers to seek alternative sources, increasing tonne-miles. But this could be offset by a drop in trade volumes, which would weigh on vessel demand. Another key risk is the potential introduction of an additional war risk premium (AWRP) for the region. This would complicate clean product exports from the Mideast Gulf, although Iranian volumes would be unaffected, as Iranian exporters do not rely on western marine insurance and would not be subject to the premium. Tensions between Iran and Israel have flared several times in recent years but have not caused prolonged disruption to trade flows. Market participants noted that while the closure of the strait of Hormuz — through which 20pc of global oil trade passes — remains a possibility, it is seen as unlikely, as it would severely hamper Iran's own exports. By Erika Tsirikou Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Freight market on alert after Israeli strikes on Iran

13/06/25

Freight market on alert after Israeli strikes on Iran

Singapore, 13 June (Argus) — Israeli air and missile strikes on Iran in the early hours of Friday have raised the risk of disruption to shipping in the Mideast Gulf, prompting concerns over rising freight rates, insurance costs and vessel safety. The escalation has heightened tensions in one of the world's most critical oil and shipping corridors, centred on the strait of Hormuz — a chokepoint for about a fifth of global oil supply. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike. The Israeli operation targeted military facilities and infrastructure linked to Iran's nuclear programme, according to Israeli officials, who described the strikes as an act of self-defence. Israel has warned that Iran is closer than ever to acquiring a nuclear weapon. Oil prices surged following the strikes, reflecting concern about possible supply disruptions. At 08:30 GMT, the Ice front-month August Brent contract was at $73.51/bl, up by $4.15/bl from its 12 June settlement. Nymex July WTI was at $72.24/bl, up by $4.20/bl. Earlier in Asian trading, Brent had climbed as high as $78.50/bl and WTI reached $77.62/bl. Freight Market Reacts Ships operating in or transiting the Mideast Gulf and the strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said. Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution. The extent of the impact will depend on how long the hostilities last and the scale of Iran's retaliation. "The main thing to watch... is how Iran will retaliate. Shipping's stance would highly hinge on the degree of retaliation," a tanker broker said. The situation could also trigger operational disruptions, particularly for cargoes yet to load. "There is a possibility that the latest spat could fall under the force majeure clause, which could allow the cancellation of charters," a broker said. Force majeure clauses in charter parties release both parties from liability when extraordinary events — such as war — prevent contract fulfilment. But it remains unclear whether this incident meets that threshold. Higher oil prices could also push up bunker fuel costs, adding further upward pressure on freight rates, a shipowner said. Freight and energy markets are closely watching for signs of Iranian retaliation, which could worsen supply risks and increase volatility. "That [Zionist] regime should anticipate a severe punishment. By God's grace, the powerful arm of the Islamic Republic's Armed Forces won't let them go unpunished," Iran's Supreme Leader Ayatollah Ali Khamenei said on 13 June on social media platform X. While spot rates and war risk premiums are expected to rise in the short term, most market participants are adopting a wait-and-see approach. "The freight market has not yet reacted and rates in the Mideast Gulf did not jump on Friday, but nobody can predict how the conflict will develop further or how many more black swans there will be," a broker said. By Sureka Elangovan and Sean Lui Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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