Fragile Hormuz Security and Record Highs for Global Shipping Orderbook

The global shipping landscape is facing a complex intersection of geopolitical tension, legal disputes, and historic industrial growth. Despite diplomatic efforts to stabilize key trade routes, the industry remains on high alert as operational challenges persist from the Middle East to Central America.

Strait of Hormuz: Ceasefire Fails to Restore Traffic

While a tentative ceasefire agreement between the United States and Iran was recently announced, the maritime sector has yet to see a resumption of normal activity through the Strait of Hormuz. Vessel movements have remained at a near-complete standstill over the last 48 hours. The strategic waterway remains under tight Iranian military control, leaving shipowners and operators cautious about transiting the region until more concrete security guarantees are established.

Green Shipping Milestones and Orderbook Surges

In a major leap for decarbonization, Exmar has officially named the world’s first ammonia-powered gas carriers. The 46,000 cu m vessels, Antwerpen and Arlon, were constructed by HD Hyundai Heavy Industries. These ships represent the first of four ammonia-fueled mid-size carriers, with the subsequent deliveries expected later this year. This transition comes as the global shipping orderbook touches a 17-year high.

According to the latest data from BIMCO, the orderbook has reached 191 million compensated gross tonnes (CGT), representing 17% of the global fleet. This surge is driven by:

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• Aggressive newbuilding contracts throughout the 2020s.
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• Record-breaking quarterly contracting for crude tankers.
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• Increased investment in alternative-fuel-ready vessels.
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Legal Friction in Panama

In the Americas, Panama Ports Company (PPC), a subsidiary of CK Hutchison, has initiated arbitration proceedings against Maersk. The dispute centers on allegations that the Danish shipping giant is attempting to displace PPC’s operations within the Panama Canal. This legal battle adds a new layer of complexity to Hutchison’s existing litigation against the Panamanian government following the cancellation of terminal concessions earlier this year.

As these stories develop, Shoham Shipping & Logistics continues to monitor the impact on global supply chains and regional port operations to provide our clients with the most up-to-date maritime intelligence.