Strait of Hormuz crossings collapse 56% as Sinokor offers 6-month crew bonus

Shipping companies are paying crews six months of extra salary to cross the Strait of Hormuz as attacks on commercial vessels push transit volumes to the lowest since the US-Iran conflict began.

The Strait of Hormuz has become the world's most dangerous shipping lane, with verified vessel crossings collapsing to 30 over three days as shipping companies offer crews six months of bonus pay to brave the waterway.

"Companies are offering huge bonuses to crews, and while many seafarers are choosing to leave, there are still those willing to go," said Captain Pradeep Chawla, chairman of GlobalMET, a seafarer training organization that works with the International Maritime Organization.

Sinokor Group, the world's largest supertanker owner, is offering crew members the equivalent of six months of additional salary for a round trip loading crude from Saudi Arabia or Iraq and discharging in the Gulf of Oman — a voyage the company estimates takes about one month. Under the plan, a captain would receive about $15,000 in bonus pay, while an ordinary seaman earning roughly $1,500 per month would see a similar proportional uplift. Sinokor is charging charter rates of $500,000 per day for its vessels, according to a document seen by Bloomberg.

The Strait of Hormuz handles about 21% of global oil consumption. With crossings averaging just seven tankers per day in the week ending July 19 — down from 16 a week earlier, according to Rahul Kapoor, global head of shipping analytics and research at S&P Global Energy — the disruption threatens to push energy costs higher across the world economy at a time when Brent crude already trades above $91 a barrel.

Since the US-Iran conflict escalated, at least 59 commercial vessels have been attacked in the Persian Gulf and surrounding waters, with 17 crew members killed, according to United Nations shipping agency data. The latest incident involved the Kaifan, an oil products tanker owned by Kuwait Oil Tanker Co., which was struck by an unknown projectile northeast of Oman's Limah, according to security consultancy EOS Risk Group.

The attacks have triggered legal consequences. In early July, three Thai crew members filed a lawsuit against their former employer Precious Shipping and two affiliated companies, as well as the vessel's captain, alleging they were placed in danger and dismissed before their nine-month contracts expired. A projectile struck their cargo ship in March, killing three crew members.

Shipping firms avoid US-led corridor

Shipping companies are actively avoiding the US-led transit corridor along the Omani coast, according to Reuters, after vessels that deviated from Iran-designated shipping lanes under a US-Iran memorandum of understanding were repeatedly attacked. One shipping industry insider said the US appeared to have lost control of the situation. Verisk Maplecroft analyst Torbjorn Solvedt warned that Iran retains the capability to strike vessels on the Omani route, undermining the Trump administration's plan to keep the strait open.

The US military carried out an 11th consecutive night of strikes on Iran, hitting targets in the south and west of the country. Defense Secretary Pete Hegseth told Congress the war has cost $37.5 billion so far, though experts believe the real figure is likely far higher, the Associated Press reported.

Houthi threat adds Red Sea risk

The risk has spread beyond Hormuz. Iran-backed Houthi militants declared a naval blockade of Saudi Arabia, prompting at least two Saudi crude tankers to reverse course in the Red Sea. The India-flagged supertanker Desh Viraat, half-filled with crude from Fujairah, switched its broadcast signal to "Govt. of India Await" after the Houthi threat, making clear its government affiliation. Kuwait, Bahrain and Jordan all reported intercepting aerial attacks on Tuesday.

The last time the Strait of Hormuz faced a comparable disruption was during the Iran-Iraq Tanker War in the 1980s, when attacks on shipping led to a US naval escort operation and a prolonged spike in oil prices. The current crisis has already pushed Brent above $91, and with charter rates at $500,000 per day and crew willing to abandon ships rather than transit, the pressure on global energy supply chains shows no sign of easing.

This article is for informational purposes only and does not constitute investment advice.