Vessel Traffic Through Strait of Hormuz Gradually Recovers Amid Tensions
Ship Movement Shifts Toward Asia and Latin America
London
Ship traffic through the Strait of Hormuz is slowly increasing, with crude oil and liquefied petroleum gas (LPG) tankers heading mainly to Asian markets such as China and India, along with renewed activity linked to Latin America.
Data shows that vessel movement had sharply declined after joint US and Israeli strikes on Iran. In response, Tehran restricted access to the key waterway for ships linked to those countries, which disrupted global shipping and halted most traffic.
Traffic Collapse Followed by Controlled Recovery
According to the UN Conference on Trade and Development, an average of 129 vessels passed through the strait daily between Feb. 1 and 27. However, traffic dropped dramatically to just nine vessels per day in March, marking a 95% decline, based on data from MarineTraffic.
Since mid-March, ships have followed a controlled route within Iranian waters. This corridor allows Iran to monitor and regulate commercial shipping more closely.
Strict Checks and Payment Conditions
Iran now requires ships to submit detailed documents before entering the strait. These include vessel ownership, cargo details, destination, and crew information.
Meanwhile, the Islamic Revolutionary Guard Corps conducts inspections, checks sanctions compliance, and reviews cargo—especially oil shipments. Ship operators must also contact approved intermediaries linked to the IRGC before transit.
Although passage remains possible through negotiations, some operators reportedly make payments in Chinese yuan to secure safe passage.
Countries such as Pakistan, China, India, and Thailand have successfully negotiated access. Iran has allowed several Pakistani-flagged ships to pass at a limited daily rate.
Shadow Fleet and Disguised Signals
A large share of vessels moving through the strait belongs to the so-called “shadow fleet,” often used to transport Iranian oil under sanctions.
To avoid disruption, many ships broadcast alternative identities through tracking systems. For example, some claim Chinese ownership or label cargo as “food for Iran” to signal safe passage.
Data from Lloyd’s List Intelligence shows that 24% of vessels are linked to Iran, while Greece and China account for smaller shares.
Iran–Latin America Food Trade Expands
Cargo movement between Iran and Latin America has also increased. Ports in Brazil and Argentina now supply food shipments to Iran.
As a result, Bandar Imam Khomeini Port has become one of the busiest hubs in the region. Ships carrying food cargo arrive fully loaded, while others depart empty to continue their routes.
Several vessels, including Panama- and Marshall Islands-flagged ships, have openly identified their cargo as food shipments to Iran.
Energy Trade Flows to Asia
Energy exports continue to dominate shipping activity. Key regional ports—including those in Iran, the UAE, Qatar, Saudi Arabia, and Iraq—serve as major departure points for oil, petroleum products, and LPG shipments.
Most crude oil tankers heading to China carry Iranian oil. These vessels often list only “China” as their destination instead of naming specific ports.
At the same time, ships traveling from China to the Middle East usually arrive empty to load cargo.
India also receives significant LPG shipments. For example, tankers operated by an Indian firm recently transported LPG from Qatar to Indian ports.
Gradual Return of LNG Shipments
LNG shipping has started to recover after weeks of disruption. The first LNG tanker passed through the strait again after traffic had nearly stopped following attacks on regional energy facilities.
Additional oil tankers continue to move between Gulf ports, carrying millions of barrels of crude oil and maintaining regional supply chains.
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