China oil tankers join line to test Hormuz exit

SAFE PASSAGE: Ship owners are preparing for an opportunity to pass through the Strait of Hormuz, but a fragile ceasefire threatens to close the window Two fully laden Chinese oil tankers are waiting near the Strait of Hormuz, putting them in a position to become the first such vessels to leave the Persian Gulf under a days-old US-Iran ceasefire, even as ship owners scrutinize the status of the narrow waterway.The Cospearl Lake, a very-large crude carrier (VLCC) linked to China’s state-owned Cosco Shipping Corp (中遠海運), and the He Rong Hai, owned by a smaller entity, appeared to be traveling east early yesterday morning at near top speeds, according to ship-tracking data, before coming to a virtual halt. They were signaling Chinese ownership on their tracking systems, a move typically done for safety during Iran-approved transits.The tankers are part of a growing armada amassing at the entrance to the strait, off the United Arab Emirates. A Saudi Arabian-flagged VLCC, the Jaham, has moved east toward a nearby holding area off Dubai. They join two Indian-flagged, fully-laden supertankers that have been in the area since late last month — the Desh Vibhor, which was off Ras Al Khaimah, and the Desh Vaibhav, which was near Dubai.Iran and the US agreed to a pause in fighting in exchange for the opening of the strait, but there is still little clarity on details. Continued attacks — including Israeli strikes in Lebanon — have raised questions about the effectiveness of a ceasefire. Since the truce — and supposed opening of the strait — was announced two days ago, there has also been little change in traffic.Ship owners yesterday said that they were still waiting on details on how safe passage can be carried out. Iran on Wednesday warned vessels in radio transmissions that transits still required permission from Tehran, while Iranian media have also reported the country has designated routes for vessels to transit Hormuz, with inbound and outbound passages circumventing Larak Island in the strait.Japan’s Mitsui OSK Lines Ltd (MOL), one of the world’s largest shipping companies, is among the groups trying to understand the fine print and arguing it needs to see “sustainable stability” before sending its vessels through.“How it is implemented in the water, that is something we really need to understand,” MOL president Jotaro Tamura said. MOL’s priority is the safety of each ship, he said, adding that the company was working with the Japanese government. A liquefied natural gas tanker, partly owned by MOL, passed through Hormuz last week, the first time a ship with Japanese ties successfully made it through the waterway since the conflict started. While some vessels were able to pass through, that is based on the ship’s “individual situation,” Tamura said. The company needs to see “sustainable stability” in order to continue sending vessels, he added.