Two bulk carriers carrying sulphur shipments from the Middle East have crossed the strait of Hormuz in the past two days despite the heightened risk of Iranian missile and drone attacks against commercial shipping.
The 35,062 dwt Calista loaded sulphur in Ruwais, UAE, and has crossed the strait of Hormuz in recent days, likely for delivery to an Indonesian nickel producer, shiptracking data on Kpler show.
The 50,992 dwt Exeed loaded in Ras Laffan, Qatar, and also crossed the strait in the past few days, according to Kpler. The destination for this shipment is not yet clear.
These crossings come despite as many as 12 incidents last week, according to the to UK Maritime Trade Operations (UKMTO). These include a bulker that was hit alongside a container ship and several oil tankers. This is significant for sulphur shipments, because bulkers were said to not be targeted. Oil tankers have been taking most of the damage in recent months.
Vessels mostly have AIS tracking switched off while loading, waiting for crossing after loading cargoes and during the crossing in either direction, appearing back on tracking tools such as Kpler once safely out of the Gulf.
Costs for sulphur bulk shipments are estimated at $140s-200/t for 30,000-50,000t as a result of the high risk. There is a limited pool of ships willing to accept these voyages, with additional high insurance costs and risk payments for crew on Hormuz crossings.
Freight costs have also risen across regions as a result of higher bunker fuel pricing. These additional costs are limiting achievable netbacks for suppliers inside the strait, and are unlikely to fall unless the security situation improves substantially.
