Severe congestion is building in the Persian Gulf, with nearly 1,000 ships delayed since last week, as rising GPS jamming and regional tensions force vessels to restrict transits to daylight hours only, according to S&P Global.
As explained, the disruption is driven by widespread electronic interference affecting navigation and communication systems, prompting shipowners to limit movements for safety reasons. Moreover, West P&I Club has also issued a safety alert regarding the matter, as maritime authorities report that electronic interference, which include GPS jamming and spoofing, has intensified in the Strait of Hormuz and surrounding areas.
This malicious activity can cause false positioning, course deviations and navigational errors, posing serious safety risks. However, the concern is not only about potential attacks now—it’s about how to get recent loadings out of the Persian Gulf, said to S&P Global a source from a tanker company with two recently departed vessels and another currently being loaded.
This has created an unprecedented bottleneck in one of the world’s most vital energy corridors. The Strait of Hormuz, linking the Persian Gulf to the Arabian Sea, handles about 20 million barrels per day of crude, condensate and refined fuels, as well as nearly 11 Bcf/d of LNG. Multiple market sources have confirmed that the issue of GPS jamming is causing major operational disruption in the area.
Freight rates have surged in response, with VLCC rates on the benchmark Persian Gulf–China route jumping to Worldscale 80 on June 20, up from w48 a week earlier, according to Platts. Clean tanker rates have also hit year-to-date highs on Persian Gulf–North Asia routes.
Tanker brokers warned that if the Strait were to close entirely, freight rates could collapse as ships are forced to remain idle. However, if it remains open under threat, owners may command significant war-risk premiums.
