World Business Report Shipping companies still reluctant to pass through Strait of Hormuz.
Apr 8, 2026
Najmeddin Meshkati, USC engineering professor, outlines technical damage to LNG and refining sites and long rebuild timelines. Nils Haupt, Hapag-Lloyd communications head, explains why container lines are delaying transits over safety, insurance and cost worries. They discuss shipping chokepoints, backlog logistics, and the fragile market reaction to reopening the Strait of Hormuz.
AI Snips
Chapters
Transcript
Episode notes
War Premiums Turn Annual Insurance Into Weekly Costs
- Insurance and war-zone premiums have surged, making annual hull risk costs comparable to weeks of wartime premiums.
- Nils estimated that what they normally pay for a ship in a year is now being charged in a single week in the war zone.
Fuel Price Surge Is The Largest Immediate Shipping Cost
- Fuel is the single biggest additional cost for carriers, requiring about 100,000 tonnes weekly and adding roughly $40m per week from recent $400/tonne price swings.
- Storage costs also rose as containers intended for the Gulf are stacked in Oman, India and Pakistan.
Carriers Will Hesitate To Return Even After Attacks Pause
- Emily Stausibol compared Strait hesitancy to the Red Sea experience where carriers stayed away long after attacks paused.
- She noted carriers prioritise crew safety and will only return with stronger guarantees, delaying normal services even if the strait reopens.