Strait of Hormuz technically open, but not operational: head of national shipowners group

New Delhi: The Strait of Hormuz remains technically open but commercial shipping is far from normal, said Anil Devli, chief executive of the Mumbai-based National Shipowners Association of India. The National Shipowners Association of India is a nearly century-old body that represents most aspects of the Indian shipping industry.The stakes are high as 14 Indian ships are stuck in the chokepoint, which carries half of India’s crude oil and most of its liquefied petroleum gas. Devli said there must be some hesitation among sailors as Indian ships were earlier attacked by Iran’s Islamic Revolutionary Guard Corps (IRGC).Iran’s blockade continues despite a fragile ceasefire, even as the United States on Wednesday suspended a three-day naval mission to open the Strait of Hormuz. “Technically, Hormuz is open. Ships are transiting, but for commercial traffic. The risk is still huge,” Devli told toy Wednesday. Before the U.S. and Israel launched strikes against Iran in late February, thousands of ships passed through the strait each month. But by April, transit rates plummeted to just 5%.Currently, ships stuck in the strait are dodging a deadly combination of sanctions, Islamic Revolutionary Guard Corps patrols and naval escorts. “We understand that some neutral-flagged ships are transiting with Iranian connivance or U.S. protection,” Devley said, but “normal traffic” has stopped.The ships that are moving are on borrowed time and borrowed trust – ships from countries Iran considers “friends”, Chinese-flagged bulk carriers broadcasting their ownership in public broadcasts, Pakistani ships, neutral-flagged tankers carrying cargo to neutral countries, including India. Until Monday, even U.S.-flagged commercial ships were staying out of the way. Until recently, no U.S.-flagged ship had made it through.That changed on May 4, when two U.S.-flagged merchant ships transited Hormuz escorted by U.S. Navy guided-missile destroyers during the Iranian blockade as part of Washington’s Freedom Plan.When the first Indian ship appeared, followed by the second, sixth, seventh, eighth – confidence was building. Subsequently, on 18 April, two Indian-flagged vessels were hit by IRGC vessels: VLCC Sanmar Herald (2 million barrels of Iraqi crude oil) and bulk carrier Jag Arnav. An audio recording recorded the Sanmar Herald’s radio request: “Saint Pa Navy! You’ve approved – I’m number two on your list. You fire now! Let me back!”The incident prompted India to raise questions about the safety of its sailors with the Iranian ambassador, but the already fragile confidence of Indian seafarers was dealt a blow.“‘You yourselves cleared me,’ the captain told the Iranians on the radio,” Devley said. “That tells you the level of uncertainty that seafarers on ships crossing the strait are dealing with.” Weeks ago, Iran’s Islamic Revolutionary Guard Corps issued a warning to all traffic about the mined waters after an oil tanker linked to Hong Kong was gutted, hit and caught fire after trying to make a clandestine shipment.There was a brief breakthrough over the weekend. The Marshall Islands-flagged MT Sarv Shakti, transporting 46,313 tons of LPG for Indian Oil Corporation with a crew of 18 Indians, crossed the channel on May 2 and is expected to arrive in Visakhapatnam on May 13. It is the first oil tanker with links to India to pass through the route after nearly two weeks of severe disruption caused by the collapse of peace talks in Islamabad on April 13 and the subsequent US naval blockade around Iranian ports.Even operations at the Gulf ports slowed significantly during the height of hostilities last month. Shipping supplies, food deliveries and essential services to Indian seafarers and crews in hubs such as Dubai, Abu Dhabi and Kuwait have been disrupted. The situation has since stabilized, Devley said.India has so far facilitated the passage of eight LPG vessels through the strait during the crisis through diplomatic engagement and close coordination between Iranian and Indian government agencies, naval authorities and maritime agencies. Indian-flagged vessels are currently operating strictly in compliance with government directives and sanctions compliance protocols.NUSI and the Directorate General of Shipping (DGS) advise Indian seafarers in the region to maintain high vigilance in Iranian waters and the Strait of Hormuz, avoid unnecessary shore leave, keep communication systems functioning and regularly monitor advisories issued by the Indian authorities.War risk insurance costs have skyrocketed by up to 70% as shipowners pay premiums to keep crew members on board, adding millions of dollars in additional costs per voyage.For Indian shipowners, especially those on time contracts, the dilemma is causing financial pain.