Hormuz insecurity; The profit of the oil tankers increases, the cost goes to the people.
Report by Daniel Babiani
Passage through the Strait of Hormuz is a source of income for some of the tanker owners who are willing to continue operating despite the risk of a ground attack. But the same high rates that increase the income of the transport companies burden the cost of transporting oil and goods; According to the experts, some of the costs are passed on to producers and finally to consumers.
New reports of ground attacks on ships in Hormuz show that the dispute between Iran and the US over the clearance of naval mines is only part of the problem. Even if the main lanes are clear of mines, the risk of being hit by projectiles or approaching attacking boats can still make passage for ships expensive and unsafe.
Dalga Khatinaoglu, an oil and energy expert, said in an interview with DW that the sharp rise in rates created a high financial incentive to accept risk. According to him, "the cost of renting the oil tankers has increased to a certain extent, that is, it has increased more than 10 times, and the high income of transporting oil has caused some owners, especially owners of older oil tankers, to accept the risk of a ground attack."
Ahmad Allawi, an economist and university professor, explained to DW that maritime insecurity affects the cost of living in Iran through several channels, including tariff and insurance increases, cargo delivery delays, and financing and storage of more expensive goods.
According to him, "this pressure is not limited only to imported goods. Local factories and manufacturers also depend on the import of raw materials, parts and machinery. Therefore, the more expensive transportation can also increase the cost of local production."