The lack of insurance coverage is another reason why the logistics industry is finding it hard to sail through the Gulf routes, MTT Shipping and Logistics Bhd said.
Responding to a question from BusinessToday, Managing Director Ooi Lean Hin said the main problem now is insurance coverage, as some insurers are unwilling to cover ships going through affected areas until the situation becomes clearer.
“The worsening conflict in the Middle East is affecting shipping not just through higher fuel prices, but also because insurance has become harder to get for ships sailing through risky Gulf routes,” Ooi added.
However, he revealed that some vessels may still be able to pass through under special arrangements.
Ooi, who is also Chairman of the Shipping Association of Malaysia, said the disruption is already hitting trade to the Gulf hard, with far fewer ships going into the region and some vessels already there unable to leave freely.
“This is also causing delays and adding pressure across the wider supply chain,” he added.
The comments come as shipping through the Strait of Hormuz remains badly disrupted, with vessel traffic reported to be down about 95% from normal levels in mid-March, showing how serious the situation has become for global trade and energy shipments.
