SEOUL, March 11 (AJP) -South Korea’s flagship container carrier HMM has joined a wave of force majeure declarations sweeping global shipping as the Iran war disrupts maritime traffic through the Strait of Hormuz, one of the world’s most critical trade and energy chokepoints.
The company told shippers Wednesday that maritime security near the strait had deteriorated sharply due to the outbreak of war, hostile acts and attacks on commercial vessels, forcing it to impose restrictions on cargo services to the Middle East and Red Sea region.
HMM said it would immediately stop accepting new bookings for cargo loaded at, or bound for, ports in the Arabian Gulf (Persian Gulf), the Red Sea and the Horn of Africa.
Even for cargo already booked, shipments that have not yet been loaded will not be transported under current conditions, the company said.
For cargo already in transit to or from affected areas, HMM said it would exercise its rights under bill-of-lading terms. Containers may be rerouted or discharged at the nearest safe port depending on operational conditions.
The company also announced a transport disruption fee of $1,000 per container to cover additional costs such as cargo handling, storage and route changes.
An HMM official said the measures were unavoidable.
“Security conditions on the route have deteriorated rapidly due to the Iran war,” the official said, adding that the steps were necessary to protect the safety of ships, crews and cargo.
The move comes as the conflict between the United States, Israel and Iran has triggered one of the most severe disruptions to Gulf maritime trade in decades.
The Strait of Hormuz, linking the Persian Gulf with global sea lanes, handles roughly one-fifth of the world’s oil shipments and serves as a key artery for container trade between Asia, the Middle East and Europe.
Industry data shows vessel traffic through the waterway has dropped sharply since the conflict erupted on Feb. 28 as missile and drone attacks on commercial vessels forced carriers to suspend services or divert ships.
Major shipping lines including Maersk, CMA CGM, COSCO and Hapag-Lloyd have halted bookings or invoked force majeure provisions on shipments to several Gulf destinations.
Force majeure is a contractual clause that allows companies to suspend or delay obligations when extraordinary events such as war or attacks on infrastructure prevent them from fulfilling contracts.
The disruption is spreading beyond container shipping into global energy and petrochemical supply chains.
Taiwan’s Formosa Petrochemical Corp. (FPCC) has declared force majeure on shipments of petrochemical products such as ethylene and propylene after delays in feedstock supplies caused by disruptions in the Strait of Hormuz, according to Reuters.
Energy producers across the Gulf have taken similar steps. QatarEnergy, Bapco Energies in Bahrain and Kuwait Petroleum Corp. have invoked force majeure or emergency measures as attacks and shipping disruptions affect exports.
Analysts say the growing use of the clause highlights how quickly geopolitical shocks in the Middle East can ripple through global supply chains.
The maritime crisis is also pushing up operating costs for shipping companies.
Prices for very low sulphur fuel oil (VLSFO) have climbed above $650 per metric ton, while marine gasoil has surged past $1,000, reflecting rising war-risk premiums and route diversions.
According to shipping data provider Kpler, more than 140 container ships are currently sheltering inside the Persian Gulf, unable to safely transit the strait.
The United States has moved to stabilize maritime insurance markets by launching a $20 billion reinsurance backstop to cover war-risk losses for vessels operating in the region after major insurers withdrew coverage.
With shipping disruptions now spreading across container trade, energy markets and industrial supply chains, analysts warn the conflict could create prolonged bottlenecks in global logistics if the Strait of Hormuz remains unstable.
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