The chief executive of shipping giant Maersk has stated that reopening the Strait of Hormuz would have a 'limited impact' on cargo flows, as the industry contends with soaring energy costs. Vincent Clerc noted that the company's fuel bill has nearly doubled since the conflict began, adding up to $500m (£367m) in monthly costs, which have been passed on to customers through higher freight rates.
'The reopening of the strait of Hormuz, whether it happens in the days to come or the months to come, will have limited impact on cargo flows,' Clerc told BBC News. The strait, through which a fifth of the world's oil and gas normally passes, has been effectively shut since late February, driving up energy prices.
US President Donald Trump wrote on social media that 'assuming Iran agrees to give what has been agreed to… the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran.' However, the shipping industry may still face elevated fuel costs and safety concerns when travelling to and from the Gulf.
More than 800 ships and roughly 20,000 crew members remain stranded west of the waterway. Maersk reported that a US-flagged ship, Alliance Fairfax, operated by its subsidiary Farrell Lines, exited the strait safely with US military escort. Clerc emphasised the importance of mitigating cost increases, noting that Maersk has been successful with cost and commercial measures so far.
He warned of potential 'secondary effects' such as higher inflation and demand destruction, which could soften the market in the second half of the year. Despite a 2% drop in first-quarter revenue to $13bn, Maersk maintained its profit guidance and expects container demand to grow by 2% to 4% this year. Its shares fell by 7% on Thursday.
