Inside the risky race through the Strait of Hormuz

{"text":[[{"start":7.95,"text":"The Lila Vadinar, a massive tanker carrying 2mn barrels of crude oil, was idling off the coast of Oman in the dead of the night on Wednesday when its owners called their Gulf risk adviser with a stark question: should they try to run the Strait of Hormuz in waters close to Iran?"}],[{"start":24.15,"text":"Hours earlier, the Indian-flagged vessel had turned back from a route hugging Oman’s coastline after three tankers using the same corridor were hit by Iranian missiles."}],[{"start":34.4,"text":"If the vessel had Tehran’s approval to pass through Iran’s territorial waters, it was less likely to be struck, the owners thought. But the fear of the ship being hijacked by Iran was too great."}],[{"start":45.75,"text":"After lengthy discussions, they decided to sneak out via the Omani route under cover of darkness and without broadcasting their position via the Automatic Identification System used by the world’s ships."}],[{"start":null,"text":"

"}],[{"start":56.85,"text":"The stretch of sea that extends roughly 22km from Oman’s shore on the southern side of the strait has become one of the biggest stumbling blocks in US attempts to reach a peace deal with Iran."}],[{"start":70.3,"text":"About one-fifth of the world’s oil and liquefied natural gas passed through the strait before the US and Israel launched their war on Iran, making it a critical artery for global trade."}],[{"start":82.2,"text":"Oman’s territorial waters are the only area of the waterway where Iran cannot easily exert control or lay mines. The US has provided air cover to ships using the route since late May, making it a lifeline for western vessels attempting to leave the Gulf and an important transit corridor for tankers crossing to pick up energy cargoes."}],[{"start":102.80000000000001,"text":"But the access that it has afforded ships to the Gulf out of Iran’s sight has angered the Islamic republic, which wants to control the traffic. "}],[{"start":null,"text":""}],[{"start":110.60000000000001,"text":"Few are willing to use the Iranian route as an alternative."}],[{"start":114.75000000000001,"text":"Several executives said that risks from western sanctions associated with agreeing to Iran’s conditions for use of the strait were too high. Should there be an incident in Iranian territorial waters, there was no guarantee that the ship would get help, they said."}],[{"start":131.3,"text":"The attacks on Monday and Tuesday on tankers came after Iran’s Islamic Revolutionary Guard Corps escalated its threats, telling ships that they should only sail through using Iranian waters or risk being hit, according to two people close to the situation. Several vessels made U-turns as a result, they said."}],[{"start":150.65,"text":"The Lila Vadinar had set out from the northern end of the Gulf in the early hours of July 6, heading towards Oman’s coast and hoping to reach the open sea with its Kuwaiti cargo."}],[{"start":162.65,"text":"Like most ships that have transited the strait using the southern corridor, it was only able to sail through after a complex decision-making process involving the ship’s owner, charterer, insurance company and crew, and in co-ordination with the US Navy."}],[{"start":178.3,"text":"The FT spoke to seven shipping executives and advisers involved in voyages through the strait using the Omani route, both before and after the tentative ceasefire was agreed on June 17."}],[{"start":190.8,"text":"The ceasefire has since broken down, with US President Donald Trump saying on Friday it was “over”, but that Washington has agreed to continue peace negotiations. Amid a renewed exchange of strikes between the two sides, traffic through the strait has all but ground to a halt."}],[{"start":206.70000000000002,"text":"None of the executives was willing to go on record for security reasons, but they detailed the efforts made to minimise the risk to seafarers and of vessels being hit."}],[{"start":216.05,"text":"“[The crew’s] safety was our first priority throughout, and the decision to proceed was taken only once the necessary conditions and approvals were in place,” one senior shipping executive said."}],[{"start":228.4,"text":"Crews have been “the biggest challenge”, said another. "}],[{"start":232.55,"text":"In most cases, seafarers have been given a vote on whether they were willing to transit, the executives said, although some have faced pressure to agree, two added. Those who refused were given the chance to leave and be replaced, while those willing to pass have received double or triple their usual pay."}],[{"start":null,"text":""}],[{"start":250.95000000000002,"text":"Before setting out, a vessel would first contact the US Naval Cooperation and Guidance for Shipping (NCAGS), which provides contact between merchant ships and the US Navy, to tell the operations agency that it wanted to sail through in the following 24 to 36 hours."}],[{"start":267.6,"text":"NCAGS replied with route coordinates and up-to-date information about security risks and mine threats."}],[{"start":274.3,"text":"Ships were given a start time — 10pm in the days before the ceasefire — and told where to begin the voyage. The confirmation from NCAGS could be passed to the ship’s underwriter to seek insurance for the voyage."}],[{"start":286.8,"text":"Initially, ships were told by NCAGS to switch off electronics, cover the portholes and shut off the AIS tracking system, which is used by vessels to transmit their GPS position to avoid collisions."}],[{"start":299.40000000000003,"text":"Following the ceasefire, ships began to openly signal as they passed through — although this caused “huge debate”, said a shipping adviser, particularly after Iran hit the container ship Ever Lovely on June 25. “The US needs to know where you are so they can provide air support, but if the US knows then so does Iran.”"}],[{"start":319.15000000000003,"text":"Two of the executives said that Iranian patrol boats had been seen in the channel within sight of where ships would set off from."}],[{"start":326.25000000000006,"text":"Once the transit began — often in convoys after the ceasefire — ships were expected to report their position every 30 minutes and when they reached specific way points during the six to seven hour transit."}],[{"start":340.40000000000003,"text":"Insurance rates for the voyage were typically about 7 to 8 per cent of the ship’s hull value at the peak of the crisis, according to two people familiar with the situation, but dropped to around 2 per cent when the strait appeared to open up."}],[{"start":353.75000000000006,"text":"It had climbed back up to between 2 and 6 per cent in recent days, said Marcus Baker, global head of marine at the insurance broker Marsh Risk."}],[{"start":363.25000000000006,"text":"One insurance executive said that the cost of cover varied depending on the perceived risk attached to the ship’s flag and cargo. Large crude oil tankers were an obvious target, they added."}],[{"start":374.75000000000006,"text":"In some cases insurance quotes have only been granted for a 24-hour period given the fast-changing security situation, another executive said."}],[{"start":385.45000000000005,"text":"Sometimes transits have taken days to start as discussions over risk premiums take place, and as shipowners demand protective clauses in chartering agreements in case a ship gets stuck, said one shipping executive. “There’s lots of negotiation around this because it is not something that has happened before,” they said."}],[{"start":404.45000000000005,"text":"The new round of strikes on vessels this week has brought traffic via Oman’s coastline close to a halt. Still, it is not yet clear how many ships, like the Lila Vadinar, have attempted the transit with their AIS system off, as it takes longer to assess satellite imagery to pick up so-called dark voyages."}],[{"start":423.00000000000006,"text":"For the moment, most shipowners are waiting until the situation settles before entering or leaving the Gulf.But Iran and Oman remain at odds over the future management of the waterway. Tehran wants to charge fees for safe passage, which is opposed by Oman."}],[{"start":437.80000000000007,"text":"Confidence would return, said one of the executives. “It’s really just down to vessels not getting hit.”"}],[{"start":450.55000000000007,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783768792_1864.mp3"}