A shipping industry leader revealed that approximately 100 container vessels are among 750 ships currently stranded near the Strait of Hormuz due to escalating tensions between Iran and Western allies.
Jeremy Nixon, who leads Ocean Network Express (ONE), disclosed these figures during a maritime industry gathering in Long Beach, California on Monday. Nixon explained that this represents roughly one-tenth of all container ships operating worldwide.
“About 10% of the container ship global fleet is caught up in this,” Nixon stated at the conference.
The maritime crisis developed after insurance companies halted coverage for ships traveling through the strategic waterway connecting Iran and Oman. This crucial passage handles approximately 20% of the world’s oil supply along with substantial natural gas shipments.
Iranian military officials have escalated their threats, with a Revolutionary Guards commander announcing on state television Monday that vessels attempting passage through the strait would face destruction.
Nixon warned of significant supply chain disruptions ahead, saying “All of that cargo is going to start backing up” at major shipping terminals throughout Europe and Asia.
The shipping executive, who will step down from his CEO position on July 1, confirmed that ONE has joined competitors including industry giant MSC in suspending cargo reservations bound for Middle Eastern destinations.
Ocean Network Express operates as a joint venture between three major Japanese shipping corporations: Nippon Yusen Kaisha, Mitsui O.S.K. Lines, and K Line.
