Norden modelling for Hormuz to say closed through year-end
D/S Norden A/S, one of the world’s largest commodity shipping companies, is basing its full-year guidance on the assumption that vessels trapped in the Persian Gulf will remain there until the end of 2026.
Jan Rindbo, chief executive officer at the Denmark-based company, said Monday the planning scenario reflects limited visibility rather than a prediction of the most likely outcome.
The Strait of Hormuz has been effectively shut since late February, with about 1,300 vessels currently engaged in trade stuck in the Gulf, according to an OECD maritime tracker released Monday.
Norden has seven chartered ships in the Gulf. The company raised its full-year outlook last week as tanker earnings have increased due to disruption to global oil flows following the war in Iran.
Rindbo said that when the strait reopens, it will likely operate under certain conditions and face a backlog of ships waiting to leave.
The executive, who has worked in shipping for more than three decades, said he has never experienced a comparable situation. He added that even after transit resumes, it could take time before shipowners regain confidence in the route’s safety and for traffic flows to return to normal levels.
In response to the situation, Norden has secured long-term contracts covering about 80% of its tanker capacity over the next three years, compared to typical levels of around 50%, Rindbo said.
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