Dh10t in global trade at risk due to Hormuz disruption

Container ships, oil tankers and liquefied natural gas carriers have either dropped anchor or diverted routes after insurers withdrew war-risk coverage and several global shipping lines suspended new bookings through the Strait of Hormuz, one of the world’s most important energy and trade corridors.

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The narrow waterway carries about 20 per cent of global oil shipments and nearly one-third of the world’s liquefied natural gas exports, according to the International Energy Agency, making any prolonged disruption a major risk for global supply chains.

Shipping activity through the strait has already dropped sharply as tensions escalated in early March. Daily vessel traffic fell by about 63 per cent on March 1, declining from roughly 120 ships per day to just 44, according to shipping data cited by Caixin Global.