Shipping cautiously welcomes news of U.S.-Iran peace agreement

President Trump: “Ships of the World, start your engines. Let the oil flow!” [Photo: White House]

Details on the specifics of the peace agreement reached by the U.S. and Iran remain unclear. But in a post on Truth Social yesterday, President Trump said: “I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”

The Secretary-General of the International Maritime Organization (IMO), Arsenio Dominguez, said that he “welcomes with great satisfaction the peace agreement reached between the parties in the conflict affecting the Strait of Hormuz.

“This signals a crucial return to peace, dialogue, multilateralism and diplomacy, and in particular, an important step toward restoring safety in this vital maritime corridor for seafarers and ships, as well as safeguarding the fundamental principle of freedom of navigation.

“The agreement also allows IMO to advance its plan to evacuate the thousands of seafarers stranded in the area. The organization is working in close collaboration with member states and partners to implement this plan safely and effectively. However, its implementation will require time to ensure that all necessary safety and security guarantees are in place.

“IMO reaffirms its commitment to maritime safety, the protection of seafarers, the freedom of navigation, and the continued free flow of global trade.”

International Chamber of Shipping Secretary General Thomas Kazakos said:

“This announcement comes as a relief to the 20,000 seafarers who have been caught in the middle of this war. Their safe departure from the region must be a top priority but will take time.

“With around 500 ships needing to pass through the Strait to exit the area this will require coordination. The International Maritime Organization has a crucial role, working alongside industry and states in the region, to ensure this is done as safely and as quickly as possible.

“The fundamental principle of freedom of navigation has been sidelined during the war, and many seafarers have regrettably been injured or lost their lives. As we now hopefully move towards peace, we must see a permanent return to vessels being able to pass through the Strait of Hormuz unimpeded without paying a toll or other clearance mechanism.”

BIMCO CAUTIOUS

“The statements by the U.S. and Iran are currently unclear and do not offer sufficient information regarding key aspects such as timings and safe routes,” said Jakob Larsen, Chief Safety & Security Officer at BIMCO. “Due to lack of details and a history of overly optimistic reassurances, we believe the security situation for the shipping industry remains volatile, and we still consider it very risky for ships to commence transits at this point. We advise shipowners to continue doing thorough risk assessments and appeal to all parties to put the safety of seafarers first.

“Ideally, the concept for resumption of maritime traffic would be directed by a neutral body like the UN. Such a concept would clarify matters such as safe routes, measures to separate traffic, sequencing of ships leaving the Gulf, reporting procedures, ship security procedures, procedures for naval protection and emergency response.

“The next step is for shipowners to be reassured that transiting the Strait of Hormuz is not only permitted but also safe. Ships trapped in the Persian Gulf will be interested in leaving as soon as it is safe to do so. This must be done in a coordinated manner due to the confined nature of the Strait.

“The threat of mines in the area remains a concern immediately as well as further down the line and mine-free routes need to be established. Credible assurances from both sides of the conflict must be given before traffic can resume fully to pre-conflict levels.”

“According to Kpler, 600 ships remain trapped in the Persian Gulf, including around 250 tankers,” said Niels Rasmussen, chief shipping analyst at BIMCO. “We expect it will take several weeks for all ships to leave the Persian Gulf. We have seen an increase in ships transiting the strait last week, however, there is no indication that the announcement of an agreement has changed the situation yet.”