Shipping volume plummeted by 95%! Organization: Only 144 vessel transits through the Strait of Hormuz in March

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Since the Middle East conflict, freight traffic through the Strait of Hormuz has nearly come to a standstill, and this globally vital energy trade route is experiencing severe congestion.

On March 24, shipping analytics firm Kpler reported that from March 1 to 23, as of 4:00 pm GMT, there were only 144 transits by merchant vessels through the strait, a sharp drop of 95% compared to peacetime levels. The latest report from shipping intelligence agency Lloyd’s List stated that “the passage conditions in the Strait of Hormuz continue to be seriously disrupted.”

Currently, the few vessels allowed to pass mainly rely on a northern route skirting Iran’s Larak Island coastline, reportedly approved by Tehran. Iranian authorities are processing transit applications case by case, and some national governments have entered negotiations with Tehran for bulk transit arrangements.

Iranian vessels dominate the traffic, over 40% of passing ships are on sanctions lists

Of the 144 transits, oil and gas tankers completed 91, more than half of which were fully loaded, with most heading east out of the strait. Lloyd's List Intelligence analyst Bridget Diakun said last week that among the vessels that completed transits, Iranian-owned or Iranian-flagged ships accounted for the largest share, followed by Greek and other national operators.

AFP’s analysis of transit data shows that since the outbreak of hostilities, over 40% of ships passing through are on US, EU, or UK sanctions lists; for oil and gas carriers, the proportion is close to 59%. Diakun noted that since March 16, “all westbound ships have been shadow fleet, gas carriers, or oil tankers, absolutely dominating transit flows.”

J.P. Morgan commodity analysts pointed out that the vast majority of oil passing through the Strait of Hormuz is destined for Asia. Overall, of the observable oil transit volume, 98% is Iranian crude oil, averaging about 1.3 million barrels per day in early March. Meanwhile, according to MarineTraffic data, since March 3, about 11 LNG carriers originally bound for Europe have diverted to Asia due to supply constraints and rising spot prices.

The northern corridor is gradually taking shape, some vessels have paid fees to pass

Lloyd’s List tracking shows that more than 20 ships have used the above-mentioned northern “corridor,” most of which are owned by Greek shipowners, along with vessels owned by Indian, Pakistani, and Syrian operators. According to Lloyd’s List, at least one vetted vessel paid $2 million to secure safe passage.

On March 23, two Indian-flagged LPG tankers and a Panama-flagged vessel, “Bright Gold,” all transited via the northern route. The latter was carrying about 40,000 tons of methanol, expected to reach its destination on April 13. In addition, a container ship called “Newvoyager” completed its transit after paying fees to Iranian authorities, though the exact amount and payment method were unconfirmed.

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