The Strait of Hormuz has become one of the world's most perilous shipping lanes, and maritime companies are attempting to bridge this risk gap with financial incentives.
According to a report, international shipping firms, including the world's largest supertanker owner, Sinokor Group, are offering substantial bonuses to crews willing to transit the Strait of Hormuz. Since the outbreak of US-Iran tensions, at least 59 merchant vessels have been attacked in the Persian Gulf and surrounding waters, resulting in 17 crew fatalities. Despite soaring insurance premiums and crew bonuses, a significant number of seafarers are reportedly choosing to forgo the extra pay rather than risk the passage.
Traffic Bottleneck
Latest shipping data from Kpler indicates that between July 17 and 19, only 30 verified transits were recorded through the Strait of Hormuz, showing that traffic through the chokepoint remains severely suppressed. Concurrently, as reported by Reuters, shipping companies are actively avoiding a US-led transit corridor along the Omani coast, fearing Iranian strikes. This development has further intensified market concerns about the security of global energy transportation.
Sinokor's Lucrative Offer
Documents obtained by Bloomberg reveal that Sinokor Group is offering crews a bonus equivalent to six months' additional salary, conditional on completing a round-trip voyage loading crude oil from Saudi Arabia or Iraq and discharging in the Gulf of Oman—a journey the company estimates takes about a month.
Under this scheme, a captain could receive a bonus of approximately $15,000, while an ordinary crew member's monthly salary is only around $1,500. Notably, Sinokor charges charter rates as high as $500,000 per day, drawing attention to the stark disparity between the bonuses paid to crews and the revenues earned by shipowners.
Finding Willing Crews
Captain Pradeep Chawla, Chairman of global seafarer training organization GlobalMET, who also collaborates with the International Maritime Organization (IMO), confirmed that "some companies are offering huge bonuses" to crews. He noted, "We hear that a lot of seafarers are signing off, but the companies are still finding people to go."
Legal Repercussions from Attacks
The deteriorating security situation in the Strait has triggered legal consequences. In early July, three Thai crew members filed a lawsuit against their former employer, Precious Shipping, two associated companies, and the ship's captain. They allege they were placed in danger and dismissed before their nine-month contract ended. This followed an incident in March where a projectile struck their cargo ship, killing three crew members.
Data from a UN shipping agency shows that since the US-Iran conflict began, at least 59 merchant ships have been attacked in the Persian Gulf area, with 17 crew members killed. The frequent attacks on commercial vessels have directly caused a sharp decline in traffic through the Strait of Hormuz, leading to a significant increase in transportation costs.
Questionable US-Led Transit Plan
As per Reuters, shipping firms are deliberately steering clear of the US-led transit corridor established along the Omani coastline for the Strait of Hormuz. The reason is that vessels bypassing Iran's designated shipping lane have been attacked multiple times under the framework of the US-Iran memorandum of understanding (MoU).
A shipping industry source suggested that the US side appears to have lost control of the current situation. Torbjorn Solvedt, an analyst at risk consultancy Verisk Maplecroft, warned that Iran retains the capability to strike vessels on the Omani route, making the Trump administration's plans to maintain transit through the Strait difficult to implement.
The current situation indicates that, against a backdrop of unresolved geopolitical risks, there is extremely limited scope to maintain shipping order in the Strait of Hormuz through economic incentives alone. The pressure on the global energy supply chain is unlikely to dissipate in the short term.