Shipowners and charterers prepare to move after US and Iran agree ceasefire

SHIPOWNERS with vessels that have been stuck inside the Middle East Gulf since the Iran conflict began on February 28 are preparing for a swift exit following a US-Iran ceasefire that promises to temporarily unblock the Strait of Hormuz.

Over 800 ships are currently stuck inside the gulf, but shipowners and charterers with ships inside have confirmed to Lloyd’s List that preparations were being made on Wednesday morning to start moving their ships.

The immediate priority will be to move laden tankers out, however one charterer confirmed that they were already looking to price ballast voyages in following the announcement of a two week ceasefire on Tuesday.

Key details remain uncertain: Iran says it has agreed to two weeks of safe passage in coordination with its armed forces and within “technical limitations”, while US president Donald Trump announced a “COMPLETE, IMMEDIATE, and SAFE OPENING”.

It is also unclear if the two have settled on transit payments, or when the truce takes effect.

Iran’s Supreme National Security Council said talks with the US would begin on Friday in Islamabad to discuss a 10-point Iranian proposal, which included continued control over ship traffic in the Strait of Hormuz and the lifting of sanctions.

While individual shipowners are keen to move, industry officials remain more hesitant and a series of meetings have been called to clarify the detail of what is going to be possible.

One owner with several ships inside the Gulf told Lloyd’s List on Wednesday morning that he was busy making plans to move his ships, however nothing was going to happen until it was clear “what protocols are inevitably going to be imposed by Iran”.

That indicates that as far as shipowners are concerned, it is still Iran that remains in effective control of the strait and permission will need to be sought from the Iranian Revolutionary Guard Corps.

As of Tuesday, transits were still being negotiated on a case-by-case basis, however it remains unclear whether that system will now be amended in light of the tentative two week ceasefire.

Under the current system each vessel seeking clearance to move through the Strait has been required to submit a formal request via the vessel’s agent in Iran.

Shipowners are then required to provide documentation on ownership, management, financing, insurance, trading history of the vessel and charterer contracts to prove that the vessel has no US or Israel affiliation.

After all documentation has been cleared and the pre-approval is granted, a physical inspection may or may not be required.

Once the vessel has received the green light, the Islamic Revolutionary Guard Corps officials provide a list of waypoints for the vessel to follow. In some instances an IRGC speed boat accompanies the vessel through the strait.

As of Wednesday morning, shipowners and industry security officials have not been informed of any change to that established system and until clarity is offered most owners are unlikely to move immediately.

“I think most owners will exercise restraint and await a more solid basis on which to take a decision, including clarity regarding naval cooperation and guidance to shipping,” said BIMCO chief safety and security officer Jakob Larsen.

Any attempt to exit before a transit agreement has been fleshed out would entail heightened risk to crew, ship, and cargo, according to Larsen.

“That said, it can’t be ruled out that some will accept the added risk, but that would not be a course of action I would recommend”.