A Palau-flagged oil tanker under U.S. sanctions was hit on 1 of March off Oman's Musandam peninsula according to Reuters. The attack followed earlier drone strikes elsewhere in the Gulf country, at the commercial port of Duqm on the Arabian Sea. Attack was occurred about 5 nautical miles north of Musandam's Khasab Port on the Strait of Hormuz. (01.02).
About 170 containerships totalling 450,000 teu are stuck inside Hormuz; Middle East Gulf ports report shutdowns and disruptions. Freight impact depends on how long Hormuz stays constrained, some vessels may get exemptions (01.02)
Shipping lines avoid the Red Sea route. Major carriers such as CMA CGM,MSC and Hapag-Lloyd are once again rerouting vessels around Africa and suspending traditional Red Sea/Suez Canal routes due to heightened risk as Seatrade-maritime.com reported (02.02)
Impact on freight rates
According to Xeneta, average spot rates from China to UAE have ticked up 5% since 15 February to stand at USD 1572 per FEU (40ft equivalent container).
Longer sailing distances around the Cape of Good Hope currently absorb around 2.5m teu of global container shipping capacity. A large-scale return to the Red Sea would have freed up this capacity, slashed transit times and potentially seen freight rates collapse. Now this prospect off the table.
