Shipping data show at least 15 container ships have reversed course while attempting to enter or exit the Strait of Hormuz, with several others either halted or diverted. Photo: Wikimedia CommonsGlobal shipping lines have suspended vessel movements through the Strait of Hormuz, while war risk insurance firms acted quickly to issue cancellation notices for ships operating in the Middle East, signalling a sharp escalation in maritime risk after the US and Israel launched strikes on Iran, insurance circles said.Major container carriers have either halted or diverted vessels away from the Strait of Hormuz and rerouted traffic from the Suez Canal as tensions spiralled following Iran’s retaliatory strikes on US bases in the region. The rare move by insurers to submit cancellation notices even before markets reopen on Monday underscores the speed and seriousness of the unfolding crisis. Insurance costs are expected to spurt if the war continues for a long time, insurance sources said.A tanker anchored offshore near Oman was hit and evacuated, accentuating the shipping crisis in the region.Also read | Iran tells ships passage through Strait of Hormuz ‘not allowed’: ReportWar risk premiums for ships transiting the Gulf, which were around 0.25% of a vessel’s replacement value, are now expected to jump by as much as 50%, says a report. For a $100 million vessel, that would mean insurance costs rising from $250,000 to $375,000 per voyage. Premiums for ships calling at Israeli ports — previously about 0.1% of vessel value — could also surge by a similar margin as underwriters brace for further retaliation, according to a Financial Times report.According to Lloyd’s List, shipping data show at least 15 container ships have reversed course while attempting to enter or exit the Strait of Hormuz, with several others either halted or diverted. An estimated 170 container ships — with a combined capacity of roughly 450,000 TEU (refers to Twenty-foot Equivalent Unit, the standardised unit of measurement used in maritime trade to calculate cargo capacity for ships, ports, and containers), or about 1.4 per cent of the global fleet — are currently inside the strait and facing restrictions on departure.Mediterranean Shipping Company (MSC) said on Sunday it had suspended all bookings for worldwide cargo to the Middle East until further notice. Earlier, MSC instructed vessels operating in or heading towards the Gulf to move to designated safe shelter areas.CMA CGM, the world’s third-largest container shipping line, similarly directed all ships in or en route to the Middle East Gulf to take immediate shelter and suspended all Suez Canal transits. Hapag-Lloyd later announced a halt to all transits through the Strait of Hormuz, citing its “official closure by relevant authorities amid the evolving security situation,” and warned of delays, rerouting and schedule disruptions for Gulf-bound services, Lloyd’s List said.Story continues below this adAlthough Iran has not formally declared a blockade of the strait, several global shipping companies and charterers have independently ordered vessels to avoid the waterway, effectively paralysing one of the world’s most critical maritime chokepoints. © The Indian Express Pvt LtdTags:Express Explained