Freight News, Sea


Iran threat to shipping not over yet

[ March 13, 2026   //   ]

The US President may be talking up the destruction of Iran’s war machine but the regime’s capabilities to cause shipping havoc should not be lightly disregard, an insurance expert told a European Shippers Council web forum.

Ellis Morley, associate director of cargo and commodities at Howden Group told the online gathering on 13 March: “Iranian capabilities are far greater than people gave them credit for. They’ve been able to strike vessels well outside the perceived high-risk area.”

He pointed out that a ship in the port of Salalah, in southern Oman – well away from the main conflict zone – had been hit, although he added that risks to shipping were undoubtedly much higher in the Straits of Hormuz. At their narrowest point, the Straits are only 34 miles wide, which made ships transiting the area highly vulnerable, especially as the geography of the area meant that vessels had to spend a long time in the danger area.

There has been talk of military escorts, but naval ships are not immune from drones and missiles either, Morley pointed out.

Since the US military action, insurers have redrawn the area deemed to be high risk and some coverage has been reinstated, albeit at much higher prices than before. “However, just because insurance is available does not mean that ships should ‘run the gauntlet’. We are not encouraging vessels to run into the high risk area.” He added that the whole of the Persian Gulf is now considered high risk

Damian Viccars, director of European government affairs at the World Shipping Council told the seminar that while Houthi rebels, who have lately made the Red Sea and Suez Canal on the other side of the Arabian Peninsula a no go area for shipping had stepped up their rhetoric and tested missiles. Ship operators had revered to the much long Cape route so delays and congestion throughout the highly inter-connected global shipping system were possible.

He added: “A lot will depend on the nature and duration of this crisis. But it doesn’t loojk as if it’s going to end any time soon.”

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