BIMCO Comments on US Proposal to Introduce Protective Measures for Shipping in the Strait of Hormuz
BIMCO’s Chief Safety & Security Officer, Jakob Larsen, has commented on the proposal from US President Donald Trump to launch initiatives aimed at protecting shipping. In a statement, he said:
The announcement from US President Donald Trump about selling “political risk insurance and guarantees for the financial security of all maritime trade, especially energy shipments traveling through the Gulf” has yet to be fully explained. Depending on the details of the proposal, it could help shift the risk–reward balance and encourage more shipowners to resume operations in the high-threat area.
Trump’s statement that “if necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz as soon as possible” is notable, and further clarification is awaited on how this plan would be implemented.
Naval escorts could help reduce the threat to ships receiving protection. However, providing protection for all tankers operating in areas currently threatened by Iran would be unrealistic, as this would require a very large number of warships and other military assets.
At some point in the future, if the Iranian threat is significantly reduced, the relative effectiveness of naval escorts could improve. This may lower the security risk to a level acceptable for some shipowners and encourage vessels to resume operations in the high-threat area.
