Shipping Companies Refuse to Take Risks: “Security of the Strait of Hormuz Comes First”

NYN | Reports and Analyses 

In a notable development, major shipping companies have refused to risk the safety of their vessels and crews in the Strait of Hormuz, disregarding a package of substantial financial and military incentives offered by the U.S. administration. These companies have demonstrated that the security of the Strait and the protection of human lives outweigh any potential financial gains.

The Strait of Hormuz is a vital artery for the global economy. Approximately one-fifth of the world’s daily consumption of oil and liquefied natural gas passes through this strategic waterway, which is only 21 nautical miles wide at its narrowest point. With the escalation of military operations in the region, commercial shipping has nearly come to a complete halt, placing global energy supply chains under severe strain.

Washington’s Incentives Fail to Change Course
The U.S. administration, led by President Donald Trump, sought to contain the repercussions of the crisis. Washington launched an unprecedented package of financial and military incentives, including a $20 billion maritime reinsurance program. This initiative was offered by the U.S. International Development Finance Corporation, aiming to encourage shipping companies to resume their operations.

Treasury Secretary Scott Bessent led a campaign to reassure global markets, pledging that the United States would regain full control of the Strait. He promised the provision of U.S. or multinational military escorts to ensure the safety of transiting vessels, with the goal of creating a protective umbrella to ease pressure on global energy prices.

Despite this official optimism and the availability of substantial financial backing, Washington’s ambitions have collided with a complex reality on the ground. Major maritime shipping companies continue to reject the offer. They consider that financial guarantees cannot compensate for the existential risks threatening their crews and multi-billion-dollar assets. This gap reveals a deep crisis of confidence.

Security Over Money: The Maritime Safety Dilemma
The core challenge facing navigation in the Strait of Hormuz is not the absence of insurance coverage, but rather the escalation of risk to intolerable levels. At Lloyd’s Market Association in London—the heart of global marine insurance—reports confirm that war-risk insurance policies remain available. Private insurers are willing to cover voyages, but this alone is insufficient.

Neil Roberts, a shipping expert at the association, points to the essence of the issue: the reluctance of vessels stems primarily from the assessments made by shipowners and captains. They believe the risks to crews and vessels exceed what any financial compensation could offset, reflecting the highest priority given to human safety.

This concern is clearly reflected in the stance of major ship management companies. V.Group, which oversees thousands of seafarers and hundreds of vessels, faces a significant challenge. Ships do not operate on their own, and seafarers have rights guaranteed by international unions, allowing them to refuse sailing into conflict zones.

René Kofod-Olsen, CEO of V.Group, emphasized that commercial pressures cannot override the safety of human lives. This ethical and legal principle forms a solid barrier against all financial incentives proposed by Washington, underscoring the paramount importance of maritime security.

Operational Challenges and Future Implications
In addition to direct security threats, operational burdens on vessels stranded in Gulf waters are intensifying. Prolonged waiting periods have turned into a logistical nightmare, with shortages of essential supplies, difficulties in crew changes, and disruptions to port schedules—all of which drain resources and increase costs.

This situation highlights a profound global challenge in supply chains. Shipping companies are prioritizing the safety of their crews and assets, reflecting the maritime industry’s recognition that economic incentives lose their appeal when conflict dominates the environment. The future of security in the Strait of Hormuz remains uncertain, casting a shadow over the stability of global energy markets.