BAROMETER. Spot market freight rates registered a strong increase on Asia-Europe and Asia-US routes, as the peak season began early amid continuing uncertainty concerning the situation in the Strait of Hormuz.
The situation in the Persian Gulf
On June 18, the United States and Iran signed an outline agreement to end the war started by the United States and Israel on 28 February. The agreement provides for a 60-day negotiating period to reach a final agreement. At this stage, however, one cannot but conclude that there has been little progress towards the reopening of the Strait of Hormuz. Disillusionment has replaced what confidence there was in the parties’ capacity to restore the free passage which existed in the strait before 28 February, as hostilities resumed in early July.
- Persian Gulf Strait Authority (PGSA) exercises de facto control
Even if it has no status in international law, the Persian Gulf Strait Authority (PGSA), the creation of which was announced by Iran’s Guardians of the Revolution in May (see our last barometer), has de facto control over ships looking to go through the strait. The Iranian authorities are currently able to dictate which ships pass and which do not, whether they take the northern, central or southern route.
The CMA CGM Galapagos emerged from the Persian Gulf without difficulty after using the north route via the Iranian-controlled Larak...
This content is for Upply subscribers only.
If you are already logged in but still cannot access all the content, please contact us!
