Strait Of Hormuz Blockades Reshaping Trade Routes, Shipping Group Says

  BERLIN, May 21 (Bernama-dpa) - Disruptions to shipping through the Strait of Hormuz due to the war in Iran are reshaping global trade routes, driving increased traffic through the Panama Canal as oil tankers seek alternative passages, according to a leading international shipping association.

Transits through the canal have risen 8 per cent so far this year compared with the same period last year, with oil tankers accounting for much of the increase, the Baltic and International Maritime Council (BIMCO) said on Thursday.

BIMCO said the canal has handled an average of 38 crossings per day this year, close to its maximum capacity of 36 to 40 daily transits.

The rerouting comes amid ongoing disruptions in the Strait of Hormuz, a key artery for global energy trade, which Iran took control of after the beginning of US-Israeli attacks at the end of February. Threats, inspections and attacks on ships have since brought traffic through the strait largely to a standstill.

Following the start of a ceasefire between the warring parties, US President Donald Trump in April announced a naval blockade targeting ships entering or leaving Iranian ports.

A recent report by shipping data provider Kpler said no tankers loaded with Iranian crude oil have passed through that blockade.

Iran has sharply increased oil storage both on vessels within the Gulf and on land during the blockade period, the report said. The volume of Iranian oil already stored aboard ships outside the blockade fell last month from 122 million to 89 million barrels, cargoes that may still be sold. China is considered the main buyer of Iranian oil.

If the US naval blockade remains in place, Iran’s oil revenues could dry up entirely within 60 to 70 days, Kpler said.

--BERNAMA-dpa