34,000 shipping routes diverted from Hormuz disruption: Report

More than 34,000 ships diverted routes in the first four weeks of disruptions through the Strait of Hormuz, a new report finds, with no sign of normalization as global shipping networks continue to adjust.

Week 4 produced the highest total diversion volume of the period, according to visibility platform project44, amid sustained rerouting that has yet to return to pre-disruption patterns since the United States and Israel attacked Iran Feb. 28. Iran has metered a steady trickle of mostly non-U. S.

-connected vessel traffic through the narrow waterway that guards the Persian Gulf. Thousands of tankers and cargo vessels have been trapped in the region, stalling 20% of global crude oil supplies and sending fuel prices soaring.

President Donald Trump in a profane Easter Sunday social media post threatened Iran with escalating attacks if it did not open the strait. Tehran dismissed those threats. Maersk (OTC: AMKBY) and other shipping lines have asked the Federal Maritime Commission to waive the 30-day waiting period to implement emergency fuel surcharges. But the U. S.

shipping regulator has repeatedly rejected their claims, even as some analysts say the statutory waiting period is ill-suited to accommodate the sharp bunker increases occurring on a day-to-day basis. Iran and Oman are reportedly discussing a postwar plan for Hormuz that could see vessels pay tolls, similar to how Egypt manages the Suez Canal. U. S.

-based project44’s report says Gulf disruptions are moving beyond short-term responses to structural changes, as cargo flows shift east into new routing structures across the Indian Ocean and Asia. Saudi Arabia and Singapore are emerging as key diversion destinations, while the United Arab Emirates’ share declined from 42. 6% in Week 1 to 33. 1% in Week 4.

India’s Jawaharlal Nehru Port in Navi Mumbai has rapidly transformed into a major transshipment hub, with volumes increasing more than 700% compared to February baselines, the report found. While the Persian Gulf accounts for just 2% to 3% of global container volume, the displacement of containers is worsening congestion across regional ports.

Dwell times are rising in India, Singapore and China with no indication of stabilization, pushing up container rates on critical east-west headhaul routes from major hubs to the United States and Europe just as seasonal demand restarts.

Navi Mumbai has emerged as the most pressured port in the region, with import dwell more than doubling from under 12 days at the time of closure to 23. 47 days by Week 4, project44 said, the highest level observed across the network.

“The surge is being driven by a sharp increase in transshipment activity, reflecting a rapid reconfiguration of carrier routing strategies,” the report found. More broadly, Saudi Arabia has emerged as the second-busiest destination for rerouted cargo while traffic through traditional Gulf hubs has declined as carriers seek multiple alternative ports.

“What we’re seeing now isn’t just rerouting. It’s network restructuring,” said Eric Fullerton, vice president of product marketing and data insights at project44. “Ports that were secondary nodes a month ago are now carrying transshipment loads they were never built for. The congestion we’re seeing isn’t a temporary backlog.

It’s what happens when carriers rebuild routing structures faster than port infrastructure can absorb them.” The analyst said the data suggests the pressure will continue to build before it eases. Read more articles by Stuart Chirls here.