Shipping firms and unions keep Hormuz listed as war-risk area

PARIS: Shipping companies and labour unions have decided to keep the Strait of Hormuz classified as a warlike operations area despite a ceasefire between Iran and the United States, after two vessels were hit in separate incidents last week.

The decision was announced on Wednesday in a joint statement issued by the International Transport Workers' Federation and the Joint Negotiating Group, which represents shipowners. The statement said the designation would remain in place until at least July 9 and would be reviewed on a weekly basis.

The two organisations said the move reflected the level of danger still facing crews in the area and the fluid security situation. In the statement, they said, "This decision recognises the continuing and significant risk to life and the rapidly evolving situation in the area."

A person familiar with the talks told AFP that the designation might have been reconsidered this week if there had been no further attacks and vessel movements through the waterway had continued without disruption. Instead, two ships were struck on separate days since last Thursday, reinforcing concerns among shipping interests and unions.

Designation remains in force

The Strait of Hormuz was first placed under the warlike operations category on March 5 after attacks on ships attempting to pass through the strategically important route. The classification applies to vessels whose owners are signatories to the International Bargaining Forum's labour agreements. According to the IBF, that includes about 15,000 ships around the world.

Under the arrangement, seafarers working on covered ships are entitled to double pay, among other benefits. The provision also raises operating costs for shipping companies.

Conflict has hit merchant shipping

Commercial shipping in the region has come under severe pressure during the Middle East conflict. Merchant vessels have been heavily affected since March 1, when Iran closed the passage in response to US and Israeli strikes.

At least 14 seafarers have been killed and more than 40 vessels have come under attack during the conflict. The latest strikes took place on Thursday and Saturday last week.

Those incidents also led the International Maritime Organisation to halt a recently launched effort to evacuate the 11,000 seafarers who remain stranded in the Gulf.