Daily Digital Magazine: Pg. 2 — July 11, 2019

UK thwarts Iranian seizure of tanker

Latest incident comes after U.K. arrests ship carrying Iranian crude oil.

   A British warship escorted a tanker through the Mideast Gulf Wednesday after Iranian naval forces threatened to seize it in the latest incident rattling one of the busiest maritime trade lanes.
   The Ministry of Defense said that the HMS Montrose “ensured the safe passage of the merchant vessel British Heritage through the Strait of Hormuz.”

UK thwarts Iranian seizure of tanker

Latest incident comes after U.K. arrests ship carrying Iranian crude oil.

UK thwarts Iranian seizure of tanker

Latest incident comes after U.K. arrests ship carrying Iranian crude oil.

 
Continued from previous page
   A British warship escorted a tanker through the Mideast Gulf Wednesday after Iranian naval forces threatened to seize it in the latest incident rattling one of the busiest maritime trade lanes.
   The Ministry of Defense said that the HMS Montrose “ensured the safe passage of the merchant vessel British Heritage through the Strait of Hormuz.”
   International oil major BP owns the British Heritage, which is capable of carrying 1 million barrels of crude oil.
   News reports indicate that three Iranian ships confronted the British Heritage before the intervention of the HMS Montrose.
   The incident comes in the wake of the U.K.’s move off the coast of Gibraltar earlier in July to seize the Grace 1, an oil tanker that reportedly was carrying Iranian crude oil to Syria.
   The seizure ostensibly was related to European Union sanctions on trading with Syria. But Iranian officials have said the vessel arrest was done on behalf of the U.S., which reimposed sanctions on Iran for violating terms of a nuclear disarmament treaty.
   In response to the arrest of the Grace 1, Iran’s Revolutionary Guards Corps vowed to retaliate.
   The Strait of Hormuz, a narrow passage between Iran and the United Arab Emirates, is the most important transit point for the world’s oil supply. About 21 million barrels of oil are carried through the Strait daily, accounting for about one-fifth of world oil supply and about one-third of seaborne supply.
   Iran has been threatening shipping interests in the region since the U.S. started enforcing sanctions on the country and urging other nations not to buy Iranian crude.
   In June, two tankers were attacked near the Strait of Hormuz. The U.S. alleged Iran was behind the attacks, but it denied any involvement.
   This week Panalpina joined a list of ocean carriers announcing war risk surcharges.

We are seeing many more pricing requests for Southeast Asia and the Indian subcontinent. Few actually moved their supply chains outside of China because this will take time, especially for larger shippers. However, Taiwan and South Korea are in a unique situation: Some manufacturing had shifted to mainland China in the last decade due to lower costs, but that infrastructure is still in Taiwan and South Korea. Some manufacturing may temporarily shift back there until Southeast Asia infrastructure catches up. 

The FBX, a global container freight index measuring spot rates on major global trades, had an overall reading of $1,342 per FEU as of June 14, down 1.5% from a week prior, but up 3.4% from a year prior.

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UK thwarts Iranian seizure of tanker

Latest incident comes after U.K. arrests ship carrying Iranian crude oil.

Jul 11, 2019 on Dec 27, 2018AmericanShipper.com

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UK thwarts Iranian seizure of tanker

Latest incident comes after U.K. arrests ship carrying Iranian crude oil.

Jul 11, 2019 on Dec 27, 2018AmericanShipper.com