Commercial shipping through the Strait of Hormuz faces renewed operational disruption after two product tankers were abandoned following projectile strikes on Monday, according to the UK Maritime Trade Operations. South Korea's Sinokor Group, the world's largest owner of very large crude carriers (VLCCs), has responded by offering crews six months' extra salary for a one-month round trip through the chokepoint, Bloomberg reported. The attacks and the resulting insurance spike are forcing shippers and operators to reassess transit risk.
Tanker Attacks in the Strait of Hormuz
The Kuwait Oil Tanker Company product tanker Kaifan issued a distress call after being hit by what its crew described as a drone or missile around eight nautical miles northeast of Limah, Oman. The strike sparked an engine room fire, and the crew later abandoned the vessel into a lifeboat, the UK Maritime Trade Operations reported. Hours earlier, the Malta-flagged product tanker Kavomaleas, operated by Greece's Dynacom Tankers, was struck by two projectiles near Kumzar, Oman. A fire broke out in the engine room, and the crew evacuated after deploying the ship's fire-suppression system. All seafarers were rescued, while the tanker remained burning and adrift. A separate vessel reported steering gear damage after being struck 17 nautical miles east of Dibba in the UAE. Its crew was safe, and no pollution was reported.
| Vessel | Flag | Operator | Incident Location | Status |
|---|---|---|---|---|
| Kaifan | Kuwait | Kuwait Oil Tanker Company | 8 nm NE of Limah, Oman | Abandoned, engine room fire |
| Kavomaleas | Malta | Dynacom Tankers (Greece) | Near Kumzar, Oman | Abandoned, burning and adrift |
| Unnamed | — | — | 17 nm E of Dibba, UAE | Steering gear damage, crew safe |
The attacks coincided with a tenth consecutive night of US strikes against Iranian military targets, according to the article. Commercial traffic through the Strait of Hormuz has again slowed sharply.
Financial Impact: War-Risk Premiums Surge
War-risk premiums for Hormuz transits have climbed to as much as 10% of a vessel's value following the latest attacks, Reuters reported. This dramatic increase in insurance costs adds significant expense for any carrier operating in the region, compounding delays and safety concerns.
Sinokor's Crew Compensation Offer
To secure crews for the dangerous route, Sinokor Group has offered an additional six months' salary for a one-month round trip, Bloomberg reported. The round trip involves loading oil in Saudi Arabia or Iraq and discharging in the Gulf of Oman. This premium underscores the acute labor challenge at a time when seafarer safety is the most immediate pressure point, according to the article.
Operational Implications for Shippers and Operators
For freight forwarders and logistics managers moving crude or refined products through the Middle East, the situation demands immediate contingency planning. Alternatives include rerouting via the Bab el-Mandeb or the Cape of Good Hope, though these lengthen transit times significantly. Charterers should factor in war-risk premium spikes of up to 10% of vessel value when budgeting for Hormuz voyages. The slowdown in commercial traffic may also tighten tanker availability in the region, pushing up spot rates on other lanes.
Watch List
- Further US strikes on Iranian targets could escalate risks and prolong traffic disruption.
- Any additional attacks on commercial vessels will likely push war-risk premiums even higher.
- Crew shortage pressure may force more carriers to follow Sinokor's compensation model or avoid the strait entirely.
- Diplomatic developments affecting Hormuz security could rapidly alter the risk calculus.
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