Kenya ship agents warn the Hormuz crisis could worsen supply chain disruptions, raise freight costs and fuel inflation as vessels remain stranded. SHIPPING agents in Kenya have warned of further disruption in global trade and local supply chains as tensions in the Strait of Hormuz continues to disrupt maritime traffic.
This has pushed freight costs higher and threatening inflationary pressure on the Kenyan economy. According to the Kenya Ships Agents Association (KSAA), which is affiliated to regional and global bodies, the unfolding crisis has now left close to 800 vessels stranded globally.
This includes more than 450 crude oil tankers, while an estimated two million seafarers remain stuck at sea due to prolonged contracts and disrupted crew rotations. KSAA chief executive Elijah Mbaru said the situation remains highly volatile, with shipping schedules thrown into disarray and insurers retreating from high-risk routes.
While there was hope after the announcement of a temporary re-opening amid talks, US President Donald Trump said the US will not lift its blockade on Iranian ports until a deal has been reached with Tehran,, amid continuing uncertainty over whether fresh talks to end the war will take place.
“Closure and re-opening has defined the past few days. For a brief moment, the market thought the situation was stabilising. Ships started moving again, confidence returned and prices reacted. But within hours, everything changed. Shots were fired, ships were hit and traffic slowed again,” Mbaru said.
The strategic waterway, through which roughly a fifth of the world’s oil and liquefied natural gas passes, has effectively ceased to function as a reliable commercial shipping lane. Shipping traffic through the corridor has plunged by more than 95 per cent, forcing global carriers to reroute vessels around the Cape of Good Hope, adding 10 to14 days to journey times.
The increase in delivery timelines has also significantly increased fuel and operational costs. The crisis has also triggered a sharp spike in war-risk insurance premiums, now up by more than 100 per cent, while some underwriters have halted coverage altogether.