World’s biggest tanker fleet warns Hormuz traffic won’t rebound quickly

Major shipping companies are expected to wait weeks before resuming regular transit through the Strait of Hormuz despite a newly announced US-Iran agreement aimed at reopening the strategic waterway, the head of the world’s largest tanker operator said.

Jotaro Tamura, chief executive of Mitsui OSK Lines (MOL), told the Financial Times that shipowners would require clear evidence of lasting stability before restoring normal operations through the strait, which has been largely closed since late February amid heightened tensions in the Middle East.

“What will have to come in place is not just a simple agreement between the relevant countries, but it has to be material and translated into the real situations in the Strait of Hormuz, so that shipping lines can make themselves comfortable to go through,” Tamura said.

Although US President Donald Trump has described the route as “safe, secure and pristine,” Tamura cautioned that confidence among shipowners would not return immediately. He noted that several previous attempts to reopen the waterway had failed since the conflict began.

“Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month,” he added.

Tamura made the remarks before Trump announced the deal, expected to be signed on Friday, but MOL said the pending agreement had not altered his assessment.

Before the conflict, the Strait of Hormuz carried more than one-fifth of global oil and liquefied natural gas shipments, in addition to substantial volumes of grain and consumer goods bound for Gulf states. MOL operates more than 900 vessels, including over 200 tankers transporting crude oil, petroleum products and chemicals.

Industry stakeholders have called on the International Maritime Organization (IMO) to coordinate the movement of approximately 500 ships awaiting passage through the strait. IMO Secretary-General Arsenio Dominguez said the organization was “assessing the feasibility for vessels to transit and conduct the trade safely and securely, avoiding possible hazards like mines as well as congestion which could lead to accidents.”

Dominguez added that efforts were continuing to establish a safe evacuation corridor for seafarers stranded in the Gulf for more than 100 days.

Container shipping giant Hapag-Lloyd described news of the peace agreement as “encouraging” and said it hoped vessels currently trapped in the strait could depart “this weekend.” However, Philip Belcher, marine director of tanker association Intertanko, urged caution, saying shipowners should conduct “ship-specific” risk assessments before resuming voyages.

Prior to the conflict, around 135 vessels passed through the strait daily. Traffic has since dwindled significantly, with some ships reportedly attempting nighttime departures while operating with GPS systems switched off.

While some operators, including Greek tanker company Dynacom, continued trading throughout the standoff, others have adopted a more cautious approach. MOL still has at least seven vessels awaiting transit, although it successfully moved four ships out of the Gulf before the latest agreement.

Tamura also criticized Iran’s efforts to impose transit fees on vessels using the strait, arguing that such charges would violate international principles guaranteeing freedom of navigation. He confirmed that MOL had not paid any fees for the vessels that successfully departed.

The executive further suggested that diplomatic efforts by countries such as Oman and India played an important role in facilitating some safe passages.

“In some cases where successful transits took place, particularly in these situations, the relevant authorities or governments had worked [it] out, so we had some fortunate cases,” he said.

MOL shares have risen by approximately 20 percent this year on the Tokyo market, valuing the company at around ¥2.1 trillion ($13 billion), amid pressure from activist investor Elliott Management to improve shareholder returns.

By Vafa Guliyeva