The ongoing Middle East crisis is increasingly affecting global shipping, as the International Maritime Organisation (IMO) has urged vessels to avoid the Strait of Hormuz following attacks on two ships within the strategic waterway.
According to the United Kingdom Maritime Trade Operations (UKMTO), the British maritime security agency, “While Iran has yet to officially confirm that the vital waterway has been blocked, marine tracking sites showed tankers piling up on either side of the strait wary of attack or maybe unable to get insurance for the voyage.”
Commenting on the development in an exclusive chat with the Nigerian Tribune, the President of the Shippers Association of Lagos State (SALS), Nicodemus Olorunshola Odolo, warned that Nigerians should expect a hike in shipping cost due to the Middle East crisis.
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According to the SALS President, “Anything that has to do with war, yes, even rumour of war, there is always a side effect on shipping.
“Now, on the crisis in the Middle East, IMO has warned ships to avoid the Strait of Hormuz. This will come with implications for the running of cargo ships. The cost will definitely rise, and the difference will be transferred to the cargoes onboard the affected ships, because to pass through some zone, the shipping line will say they are taking a risk.
“Because of the risk they want to take, they will shoot up their freight. Considering this risk, the cost of running the ship, everything will go up.
“Nigeria cannot escape this increment because we are in a global village. Even if Nigeria have their own shipping line and they have vessels, it’s a global issue. Cost of fueling the ships, insurance premium on the cargoes onboard the ships, everything will go up.”
Recall that the Secretary-General of the International Maritime Organisation (IMO), Arsenio Dominguez, expressed deep concern over reports that several seafarers had been wounded in attacks following the commencement of the Middle East crisis.
“I urge all shipping companies to exercise maximum caution. Where possible, vessels should avoid transiting the affected region until conditions improve,” said Dominguez.
Maersk and Hapag-Lloyd both announced on Sunday that they were halting passage through the Strait of Hormuz and the Suez Canal, another vital artery of the world economy, citing “safety” reasons.
Tribune
