Ships Cross Hormuz in Convoy Formation as Gulf Oil Keeps Flowing

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(Bloomberg) — Two large convoys of commercial ships were observed crossing the Strait of Hormuz, one of the clearest examples yet of what appears to be an increasingly common navigational tactic to keep maritime traffic safe.

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Six freighters were seen entering the Persian Gulf closely together along a US-policed route close to the Omani coast on Wednesday, ship tracking by Bloomberg shows. A further four were seen departing. They comprise oil, gas, and fuel carriers and container ships. Several have affiliations with the United Arab Emirates. 

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In the early stages of the war, when traffic largely halted, one thought was that convoys could be used as a way to keep vessels safe because they’d be easier for the military to protect. With the conflict raging at the time, that didn’t really materialize. However, in the past few weeks, there have been several clear examples of ships seemingly crossing Hormuz in batches, with Wednesday’s movements among the clearest examples yet. 

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Understanding how cargo flows are evolving in real time has become more difficult because some transits happen with ships having turned their transponders off, meaning shipments often only come to light days later. Even so, oil exports from the Persian Gulf appear to have crept up since the US and Iran signed an interim peace deal last month. 

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Ships are generally using two routes to transit Hormuz. One, managed by the US that hugs the coast of Oman, and another that goes through Iranian waters. Iran has said it doesn’t permit transits that take place without its knowledge. 

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Western naval forces said at the weekend that the Omani transit route had been widened to allow vessels to enter and exit at the same time — as evidenced by the inbound and outbound carriers on Wednesday.

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Energy traders have been looking to Hormuz for signs that vessel traffic is resuming since the US and Iran agreed the interim peace deal that aims to reopen the waterway. Wednesday’s convoys, with ships entering and exiting the the Persian Gulf, add an extra layer of complexity to observing regional exports. 

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If all the vessels complete the journey, it would represent a day-on-day increase, ship tracking data show. 

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The rolling 7-day average of all commercial vessel transits was 38 as of June 30. However, a rush for the exit by some that were trapped since the start of the war has boosted that to as high as 40 in recent days.

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