Vessel Traffic Through Hormuz Drops 95% and Gulf Oil Exports Fall to 9 Million Barrels

Maritime navigation data revealed that commercial ship traffic through the Strait of Hormuz remains hovering at around just 5% of its pre-crisis levels, while Gulf oil exports have dropped from nearly 17 million barrels per day to approximately 9 million barrels.

This sharp decline reflects the depth of disruption the crisis is causing to global supply chains, especially since the strait is considered an almost mandatory transit route for oil exports from major Gulf countries such as Saudi Arabia, the UAE, and Kuwait.

Some shipping companies have resorted to alternative routes passing around South Africa or via the Suez Canal; however, these alternatives add weeks to voyage times and inflate logistical costs for tankers and importers.

The continuation of this level of disruption portends economic repercussions affecting the global energy, shipping, and maritime insurance sectors. Experts point out that every additional week of disruption in Hormuz costs the global economy billions of dollars in indirect losses.

What do these terms mean?

Very Large Crude Carriers: Huge marine vessels designed to transport massive quantities of crude oil holding more than two million barrels, representing the backbone of international maritime oil trade.

Maritime Supply Chains: The integrated network of ports, ships, and routes that transport goods and energy between the world's countries, the disruption of which has direct consequences on prices and availability.

Alternative Shipping Routes: Maritime routes that avoid tense areas and take longer, safer paths, such as sailing around the Cape of Good Hope in Africa instead of passing through Hormuz or Suez.