As tensions in the Middle East escalate sharply, the global shipping industry faces a new round of severe stress tests.

On the evening of February 28, Iran’s Islamic Revolutionary Guard Corps (IRGC) officially announced a ban on all vessels transiting the Strait of Hormuz, issuing clear warnings to passing ships via VHF radio.

Due to ongoing regional military operations, the strait and its surrounding waters have been declared unsafe, with an extremely high risk of passage.

According to Iran’s Tasnim News Agency, citing the IRGC, the Strait of Hormuz is now largely closed to navigation.

Known as the global “energy bottleneck” linking the Persian Gulf and the Indian Ocean, the Strait of Hormuz handles roughly 20% of the world’s seaborne oil trade and serves as a critical hub for major international cargo shipping lanes.

This sudden development has triggered an immediate chain reaction across the global shipping market, with major liner companies scrambling to mitigate risks, severely disrupting normal global cargo flows.

Data from Ship Vision Treasure – Strait of Hormuz Vessel Insight shows that vessel speeds in adjacent waters have dropped to nearly zero, with a large number of ships stranded nearby and seeking urgent shelter.

More than 100 vessels have been forced to anchor at both ends of the strait, and the number of transiting ships has plummeted.

According to Reuters, several large trading houses have instructed their vessels to hold position until the situation stabilizes.

Beyond schedule delays caused by suspended routes and port congestion, the insurance market has swiftly repriced risks, driving up logistics costs.

The UK Financial Times reports that war-risk underwriters issued policy cancellation notices for vessels operating in the Persian Gulf and Strait of Hormuz ahead of trading.

Related insurance premiums are expected to rise by up to 50% in the coming days, directly increasing total transportation costs – a development shippers must closely monitor.

Amid this sudden crisis, the global freight forwarding industry is responding proactively, prioritizing cargo safety and delivery reliability while helping clients minimize potential losses.

To address transportation risks caused by the escalating situation in the Strait of Hormuz, UNI Logistics provides the following professional recommendations for shippers and trading companies:

1. Closely monitor geopolitical and shipping developments, plan cargo movements in advance, conduct risk assessments for Middle East lanes, and allow sufficient buffer time.

2. Actively track in-transit cargo, maintain timely communication with your freight forwarder to verify real-time vessel status, and adjust transport plans flexibly to reduce delay impacts.

3. Prioritize cargo insurance coverage. Based on cargo value and route risks, update or enhance insurance arrangements promptly to avoid potential financial losses.

The recent escalation in the Strait of Hormuz is not only a severe test for the global shipping industry but also raises the bar for emergency response capabilities among shippers, traders, and freight forwarders.

As a professional freight forwarder, United Logistics puts clients’ interests first.

We maintain close coordination with major carriers, monitor real-time route updates, vessel status, and insurance policy changes, to fully safeguard your cargo safety and supply chain continuity.

Should you have any inquiries, please feel free to contact us at any time.