Despite the ceasefire declared in the Middle East, the International Transport Workers' Federation (ITF) and the Joint Negotiation Group (JNG) will maintain the Strait of Hormuz as a "war zone" until at least July 9.
Current situation
Two merchant ships were attacked near the strait even after the ceasefire. Approximately 15,000 ships have been affected under the IBF agreement.
- Crew members are entitled to double wages
- Crew members have the right to refuse navigation
- Shipping company operating costs have increased significantly
The International Maritime Organization (IMO) has suspended its planned evacuation of 11,000 crew members.
Impact on international logistics
In the short term, transportation capacity and insurance costs are unlikely to decline:
- Red Sea route detourThe situation is still ongoing, and a large amount of transport capacity is being used.
- War risk premiumMaintaining high levels directly pushes up shipping costs.
- Shipping schedule uncertaintyIncreased workload may extend delivery time.
Sellers using Middle Eastern routes need to be prepared for both high costs and fast delivery. If time is not a critical factor for shipments, alternative routes can be considered.
source:newsalert.com.pk | alarabiya.net