Did You Know That…

 

…Oman-Iran talks advance with draft Hormuz shipping plan modelled on Malacca Strait.

• Oman has reportedly proposed a joint Iran-regional mechanism for managing the Strait of Hormuz, based on the Strait of Malacca model and funded through voluntary service charges

• Industry and diplomatic sources say negotiations are advancing, with early indications that US negotiators may be receptive to the framework

• While discussions remain volatile, the proposal could pave the way for reopening key shipping lanes through Hormuz and support broader US-Iran talks aimed at ending the conflict.

A draft Oman-backed proposal modelled on the Strait of Malacca has emerged as the leading framework for restoring shipping through the Strait of Hormuz, offering the strongest indication yet that Tehran, regional states and Washington may be converging on a diplomatic solution.

…The price of passage through the Strait of Hormuz.

• Iran rejects compromise plan: Tehran has dismissed an Omani proposal for shared governance of the Strait of Hormuz, insisting that any long-term settlement must preserve a dominant Iranian role in managing inbound shipping routes

• Ceasefire may not mean normality: Iranian officials are drawing a distinction between wartime and peacetime navigation regimes, signalling that reopening Hormuz after hostilities end would require separate negotiations over governance, transit rules and administration

• Control of confidence is the real prize: while Iran lacks a recognised legal right to levy transit tolls, it is seeking to use wartime leverage to institutionalise service-fee payments and shape a post-war order, with sanctions constraints and insurer concerns likely to determine whether mainstream shipping accepts the model.

Iran’s battle over the future governance of the Strait of Hormuz is no longer about transit fees but about shaping the post-war order. For shipping markets, the key question is not when the waterway reopens, but who controls the rules, risks and revenues that govern passage.

…Container carriers hold Red Sea line despite Houthi blockade — for now.

• Containership transits through the Bab el Mandeb remained stable last week, with CMA CGM, Maersk and Wan Hai among carriers maintaining trans-Suez sailings

• Dark transits surged to nearly a third of all passages during mid-July tensions before easing slightly, while Thailand’s RCL declared force majeure and cancelled a China-Red Sea sailing

• Analysts warn the fragile calm could unravel quickly, with any further escalation threatening to drive carriers back to Cape of Good Hope routes and deepen the vessel shortage.

Boxships are holding their Red Sea transits through the Houthi blockade for now, but any further escalation could quickly drive them to alternatives.

…Our friend Steven Yuan from FS China shared another interesting marketing report:

1. Market Fundamentals & Rate Outlook
From a fundamental perspective, overall cargo throughput is exhibiting a weakening trend. While certain domestically-originated long-term contract cargoes—notably the automobile sector—continue to demonstrate stable export volumes, the European market is entering its traditional holiday lull. This seasonal shift is softening both overseas BCO booking momentum and regular FOB demand. Concurrently, available vessel capacity remains relatively ample on the supply side, offering no effective support for GRI Consequently, freight rates are projected to maintain their current downward trajectory.

2. Port Congestion & Operational Disruptions

• Port of Shanghai (Waigaoqiao & Yangshan): Severe congestion persists. The number of vessels awaiting berths has doubled, with average waiting times reaching 4.2 days. Specifically, Waigaoqiao Terminal is experiencing queues of approximately 7 days, while Yangshan Port faces delays exceeding 8 days. Container rehandling (drop-offs) at Yangshan has become almost inevitable for all vessels calling at the terminal. These operational disruptions are expected to continue over the coming weeks, resulting in widespread schedule slippage; weekly delays of 7 days are now commonly observed.

• Port of Ningbo: The port is also experiencing critical congestion, with an average waiting time of roughly 2.2 days, and certain vessels facing delays of over 3 days. Sustained high yard utilization continues to exert significant pressure across the entire port complex.

3. Commercial Implications & Service Updates
Due to the extreme saturation of container yards, drop-off charges at the Port of Shanghai have surged considerably.

Please find the updated rates below for your reference.

 

 

 

… Saudi Arabia wants to form an international coalition to ensure safe Red Sea shipping.

Riyadh is discussing a new coalition with dozens of countries as Houthi attacks are driving up oil prices.

 

 

…Oil prices fall to lowest level in over a week following a pause in US attacks on Iran.

…Should you be afraid of Elon Musk? Whether you are a fan of Elon Musk or not, I thought you might find this interview with The Economist interesting. Please find it attached: Elon Musk’s vision of the future.

…A new world record was set for running a mile. Britain’s Josh Kerr ran the distance in three minutes, 42.66 seconds, shaving half a second off the previous fastest time, which was set in 1999 by Morocco’s Hicham El Guerrouj.

 

…In 2024, 2.6 billion people had no access to the internet.

 

 

Have a great weekend!

 

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.