The security risks for container shipping are growing in the Strait of Hormuz, where a rising tide of attacks on commercial vessels is threatening maritime operations and could spread through supply chains far beyond the Middle East.
The latest incidents include the Singapore-flagged GFS Pride, which caught fire after being hit while transiting the strait on Tuesday and later sank off the coast of Oman with containers still on board. The vessel’s loss is part of a wider escalation that has seen at least 10 ships attacked in or near the strategic passage since Sunday.
Maritime authorities said Sunday alone saw six ships attacked, the most attacks in a single day since the U.S.-Iran war started in February.
An unidentified projectile hit the GFS Pride, a feeder container ship with a capacity of 2,824 TEUs. The impact caused damage and a fire that ultimately resulted in the vessel sinking. Singapore’s Maritime and Port Authority (MPA) confirmed that all 21 crew members were safely evacuated and there were no reports of injury.
The circumstances of the attack are in dispute. IRAN’S Islamic Revolutionary Guard Corps (IRGC) said the vessel had hit a naval mine while taking an “unauthorized” route and said it was carrying contraband. Singaporean authorities disputed that account, saying the ship was hit by projectiles, the MPA said. A drone strike was seen as the more likely explanation, CNN reported, citing assessments from experts.
The GFS Giselle, another Singapore-flagged container ship, was also hit by projectiles. The vessel was able to make a safe anchorage under its own power, although there was hull damage. The 22 crew members were all reported safe.
Two other feeder vessels were also targeted in the same escalation. One was the DP World Kaveri, a 2,500-TEU ship operated by a unit of Dubai-headquartered logistics group DP World.
Risks are not only to the targeted vessels
These sorts of attacks will reverberate through the container shipping industry, even for carriers that do not run the ships that are targeted.
Shipping analyst Lars Jensen warned other carriers may have purchased feeder capacity on the ships affected. According to schedules, some of the vessels were on active services with Maersk (OTC: AMKBY), Ocean Network Express (ONE), Pacific International Lines (PIL) and Orient Overseas Container Line (OOCL).
This heightens the uncertainty for shippers especially in relation to insurance cover. Analysts have warned that if the cargo is carried on a vessel not owned by the carrier named in the bill of lading, war-risk insurance may be withdrawn at short notice.
The rising number of incidents also points to an ongoing deterioration of maritime security in the region. 12 ships reported attacks between October 5 and October 11, Britain’s maritime security monitoring body United Kingdom Maritime Trade Operations (UKMTO) said. This was the highest weekly figure since the conflict began after 10 attacks last week.
On Sunday, there were six reported attacks on five tankers and a container ship.
The sinking of the GFS Pride additionally emphasizes the number of ships lost since the start of the conflict. It is the second ship to sink in the war after the Antigua and Barbuda-flagged bulk carrier Cape Dao sunk after being hit on September 23, according to casualty data from the International Maritime Organization (IMO). The GFS Pride is thus the third vessel to founder in the sequence of events described in the casualty report.
Geopolitical tensions affect maritime traffic
Tehran has defended its heightened campaign against commercial shipping, citing the U.S. blockade of Iranian ports and the tightening of sanctions. In response, U. S. Central Command said commercial ships are still transiting the Strait of Hormuz with coordinated protection from American forces and regional partners.
But even with the assurances, the latest attacks appear to be helping to stall traffic through the chokepoint.
Kpler, a shipping intelligence firm, tracked 131 crossings in the week to October 14, down from 176 the week before. However, the company warned that the decline cannot be solely attributed to the latest attacks.
There are also signs of weakening flows of energy. On Oct. 13, Kpler estimated that about 12.6 million barrels per day of crude oil passed through the Strait of Hormuz. That was down from around 15 million barrels per day at the end of September.
Multiple-attacks, insurance uncertainty and falling transit volumes underscore the strategic importance of the Strait of Hormuz to world trade. As security risks increase, the fallout is all the more likely to spread beyond the ships themselves, affecting carrier networks, cargo security measures and the flow of goods and energy through one of the world’s most vital maritime passages.
