[SINGAPORE] Navigation signals from more than 900 vessels in the Strait of Hormuz and the Persian Gulf went awry over the weekend, creating confusion in the shipping chokepoint as the fighting between Iran and Israel intensified.
Starboard Maritime Intelligence and Bloomberg data showed vessels sailing impossibly straight lines in the region, zig-zagging across the water, or appearing onshore. The glitches – which have affected oil tankers, cargo ships, tugs and fishing boats among others since Jun 13 – increase reliance on radars, compasses and eyesight, boosting the likelihood of collisions.
The Joint Maritime Information Center, an international naval task force monitoring the area, warned on Jun 15 that there are instances of “extreme jamming” of signals from the Iranian port of Bandar Abbas. However, the JMIC said there were no indications of a potential blockade of the Strait of Hormuz, which handles more than a quarter of the world’s oil trade. The UK Maritime Trade Operations echoed the concerns on Monday (Jun 16), adding that the interference was intensifying across the Gulf and affecting how ships are reporting their positions on automated systems.
“This is not a good place and not a good time to have navigation systems that can’t show exactly where you are,” said Mark Douglas, a maritime domain analyst at Starboard. “While a closing of the Strait seems unlikely, this kind of widespread jamming does cause uncertainty for anyone operating in the area.”
On Sunday, the Front Tyne, a very-large crude carrier that’s operated by Frontline, entered the Strait of Hormuz. Shortly afterwards, its signal showed it sailing north towards Bandar Abbas, zig-zagging south into the gulf, hovering onshore, and finally heading towards Saudi Arabia.
The Elandra Willow, a medium-range tanker owned by Vitol Group, also displayed erratic movements – nearing Bandar Abbas on her way out of the Gulf. The Pegasus, a Suezmax operated by Pantheon Tankers Management, has been displaying locations on the Iranian mainland since Monday morning.
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Frontline, Vitol and Pantheon did not immediately respond to requests for comment.
The Strait of Hormuz is the gateway to the Persian Gulf, where major oil-producing nations including Saudi Arabia, Qatar, Kuwait and Iran load up tankers with crude and send them out via Hormuz to their end buyers. After Israel launched airstrikes against Iran last week, concerns that the Islamic Republic would block the chokepoint intensified.
Several tanker owners have suspended sending their ships into the Persian Gulf, according to shipbrokers. Forward freight agreements for a Middle East-to-Asia benchmark journey in July, essentially bets on the future cost of moving oil on that route, gained about 12 per cent on Friday.
Analysts have expressed reservations on whether Iran would shut down Hormuz, given its reliance on income from oil shipments, especially to China. Blocking exports from other producers could also provoke a reaction from the US and its allies.
Disruptions are therefore a likelier option, said Anoop Singh, global head of shipping research at Oil Brokerage Hormuz is “Iran’s ultimate bargaining chip. And such chips remain in the bag unless a worst-case scenario presents itself,” he said in a note on Sunday. BLOOMBERG
