Business
HORMUZ ON A KNIFE’S EDGE: Ships Queue for Iranian Clearance as Insurance Costs Spiral and the ‘Armageddon Scenario’ Looms
HORMUZ ON A KNIFE’S EDGE: Ships Queue for Iranian Clearance as Insurance Costs Spiral and the ‘Armageddon Scenario’ Looms
By Raymond Gold, Co-publisher and Research Reporter, Lagos
Vessels attempting passage through the Strait of Hormuz are no longer moving freely. Ships must now coordinate directly with Iranian authorities before transiting the waterway, as escalating risks and skyrocketing insurance premiums fundamentally reshape one of the world’s most critical maritime corridors.
The shift marks a dramatic change in how global shipping is operating in the region — and the consequences are being felt far beyond the Gulf.
Thailand confirmed on Tuesday that one of its oil tankers, owned by Bangchak Corporation, successfully passed through the strait following direct negotiations with Iranian authorities. A second vessel remains anchored and waiting for clearance, alongside a growing queue of ships seeking safe transit.
The turning point came on February 28, when the current escalation began. Since then, war risk insurance premiums have surged to levels that are reshaping commercial decisions across the entire shipping industry.
David Osler, finance editor at the respected maritime publication Lloyd’s List, laid out the stark reality: before hostilities, war risk cover for a one-week Hormuz transit typically cost between 0.15% and 0.25% of a vessel’s hull value. That figure has now rocketed to between 5% and 10% — a fortyfold increase in a matter of weeks.
For a Very Large Crude Carrier (VLCC) valued at around $100 million, that translates to several million dollars in additional costs for a single voyage — a burden that is forcing shipowners to ask hard questions about whether the journey is worth making at all.
Osler noted, however, that insurance itself is not the binding constraint. Policies are still available for those willing to pay. The deeper issue is crew safety. “If they want to make the trip — and can find a crew that will agree to do the job — they are not being held back by lack of insurance,” he said.
Maritime specialist Mustapha Zehhaf confirmed that a number of shipping companies have already made the call to avoid the strait entirely. Those that do proceed are adjusting their routes, with some vessels sailing closer to the Iranian coastline in a bid to reduce exposure to attack.
Map showing the Strait of Hormuz, a key shipping route linking the Persian Gulf to global markets.
No Easy Way Around
The problem facing the global energy trade is that there are virtually no viable alternatives to Hormuz. Saudi Arabia’s East-West pipeline and the UAE’s Fujairah export line offer partial bypass options, but neither has the capacity to absorb the volume of crude and LNG that flows daily through the strait. The overwhelming majority of Gulf energy exports remain dependent on this single chokepoint.
Energy analyst Bill Farren-Price, who heads the gas programme at the Oxford Institute for Energy Studies, warned that if the current situation persists, the world is looking at a serious supply shock. In his assessment, prices will rise as supply contracts, shortages filter through to consumers, and only then will demand begin to soften in response to cost pressure.
More alarming still, Farren-Price dismissed the idea that either military force or diplomacy could resolve the crisis quickly. There is, he said, no credible military mechanism to fully secure the strait, and no diplomatic breakthrough appears imminent.
His assessment was blunt: “Much worse — this was always the Armageddon scenario.”
What It Means for Nigeria
For Nigeria, the implications are direct and serious. As a major crude exporter and a country still dependent on imported refined products, any sustained disruption to Hormuz traffic tightens global oil supply and puts upward pressure on prices — affecting everything from pump prices to shipping freight rates on routes into Lagos and Port Harcourt.
Nigerian importers, vessel operators, and energy traders will be watching developments at Hormuz closely. What began as a regional military escalation is rapidly becoming a global shipping crisis — and no maritime nation is insulated from its reach.
Waterways News | waterwaysnews.ng
Business
NIMASA to Launch Mandatory Registration Portal to Curb Foreign Takeover of Nigerian Shipping Agents Business
NIMASA to Launch Mandatory Registration Portal to Curb Foreign Takeover of Nigerian Shipping Agents Business
By Okeoghene Onoriobe, Waterways News Correspondent, Lagos
The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced plans to establish a dedicated Shipping Business and Registration Unit at the Federal Ministry of Marine and Blue Economy, as part of measures to end the growing foreign encroachment into shipping agency operations — a sector long reserved for Nigerian indigenes.
NIMASA Director-General, Dr. Dayo Mobereola, disclosed this during a stakeholders’ engagement meeting organised by the Ministry in Lagos on Thursday.
Dr. Mobereola said the agency had observed with grave concern the increasing penetration of foreigners into aspects of ports and shipping business that are exclusively meant for Nigerian operators, including shipping agency and freight forwarding services — sectors where indigenous practitioners have long raised alarm.
“We need to establish a mandatory registration and licensing portal for Nigerian shipping agents. They would be the only ones with the rights to operate in the Nigerian shipping industry,” the NIMASA boss declared.
He added that the agency had also uncovered a troubling pattern where foreign nationals were registering companies through Nigerian fronts to circumvent existing rules.
“We noticed that these foreigners are registering companies with the assistance of Nigerians. The purpose here is to eliminate such acts and help us develop the Nigerian shipping sector — most importantly the shipping agents sector — to make it more economically friendly and create jobs for Nigerians,” he said.
Dr. Mobereola confirmed that the new department would be established soon, pending approval from the Honourable Minister of Marine and Blue Economy.
The proposed unit is expected to bring structure and legal clarity to a space that industry stakeholders say has been undermined for years by the activities of foreign interests — often operating covertly through proxy arrangements with local collaborators.
Waterways News gathered that the move has been broadly welcomed by indigenous shipping practitioners who have consistently called on regulatory authorities to enforce indigenisation policies in the maritime sector.
Waterways News — Nigeria’s Foremost Maritime Industry Publication | www.waterwaysnews.ng
NPA BOSS: PORT CONCESSION RENEWALS DELAYED FOR THOROUGH REVIEW, NOT NEGLIGENCE
Dantsoho says flawed agreements could create bigger problems; urges ICD operators to adapt to changing market realities
By Okeoghene Onoriobe | Waterways News Correspondent, Lagos
The Nigerian Ports Authority (NPA) has broken its silence on the prolonged delay in renewing seaport concession agreements, attributing the hold-up to an ongoing comprehensive review designed to strengthen contractual frameworks and shore up investor confidence.
Speaking to maritime journalists in Lagos, NPA Managing Director Abubakar Dantsoho said the Federal Government is deliberately prioritising the correction of structural deficiencies in existing agreements before any renewals are approved — a signal that the administration is unwilling to repeat the contractual pitfalls that have dogged Nigeria’s port sector for nearly two decades.
Background: Contracts Running Out
Nigeria’s seaports were handed over to private terminal operators in 2006 under the administration of former President Olusegun Obasanjo, with concession agreements ranging between 10 and 25 years. With many of those contracts now expired or expiring, uncertainty has deepened across the terminal operating community, with concessionaires growing increasingly anxious over the absence of fresh agreements.
“Get It Right” — Dantsoho
Dantsoho acknowledged the frustrations of terminal operators but held firm that quality must take precedence over speed. Both the NPA and concessionaires, he said, have identified unmet obligations on various sides — issues that must be resolved upfront to prevent costly disputes down the line.
“The focus is to get it right. A flawed agreement could create bigger problems later, while a well-structured one will provide long-term stability,” the NPA chief stated.
He also pushed back against the notion that slow processing undermines investor appeal, arguing that serious investors value legal clarity and contractual certainty far more than the pace of execution. A rigorous review, he noted, could even attract fresh investors should any existing operators choose not to renew.
ICD Operators Told to Restrategise
On the question of inland container depots (ICDs) and bonded terminals, Dantsoho issued a pointed advisory: adapt or risk irrelevance. He noted that while such facilities were critical pressure valves during periods of severe port congestion, the progressive easing of gridlock at Nigeria’s major ports has begun to erode the commercial rationale for their current operating models. Operators, he warned, must restrategise to remain competitive in a shifting maritime landscape.
NIGERIA WATCH: What this means for terminal operators, freight forwarders, and port stakeholders
The NPA’s position on concession renewals has far-reaching implications for virtually every layer of Nigeria’s maritime supply chain.
For terminal operators at Apapa, Tin Can Island, and the emerging Lekki Deep Sea Port, the delay introduces commercial uncertainty — investment decisions on equipment, berth upgrades, and staffing are difficult to commit to without clarity on tenure. Some operators are believed to be operating on tacit month-to-month arrangements, a situation that discourages capital expenditure.
For freight forwarders and shippers, stability of terminal operations directly affects cargo handling efficiency, tariff predictability, and turnaround times. Protracted uncertainty at the operator level has a downstream effect on the cost of doing business through Nigerian ports.
The NPA’s hint that new investors could enter if existing concessionaires step aside is significant. It opens the door to fresh capital and potentially more competitive terminal management — but only if the review produces the legally watertight agreements Dantsoho is promising.
On ICDs and bonded terminals, the warning is clear: the congestion-driven business model of the past is fading. As the NPA and the Nigerian Shippers’ Council (NSC) continue to push efficiency reforms, facilities that once thrived on cargo diversion and storage overflow must find new value propositions — whether in last-mile logistics, warehousing, or value-added trade facilitation services.
The Federal Ministry of Marine and Blue Economy and NIMASA will also be watching closely, as the outcome of the concession review will set the template for how Nigeria manages its blue economy assets going forward — and whether the country can finally position its ports as competitive gateways in the West African sub-region.
NSW Opens Apapa Support Centre as Digital Trade Platform Goes Live
By Emetena Ikuku, Waterways News Correspondent
LAGOS — The management of Nigeria’s National Single Window (NSW) has established a dedicated stakeholder support centre at 34 Wharf Road, Apapa, following the go-live of the country’s long-awaited digital trade facilitation platform last Friday.
The NSW platform — a Federal Government initiative to consolidate all port-related documentation and regulatory processes into a single digital environment — launched formally earlier in the week before transitioning to full commercial operations days later, marking a significant shift from pilot-phase testing to live deployment.
Support Centre Targets Smooth Onboarding
The Apapa facility is designed to assist port operators, freight forwarders, customs agents and other stakeholders encountering difficulties navigating the new system. Its location on Wharf Road, at the heart of Nigeria’s busiest port corridor, is intended to ensure ease of access for users operating within the Apapa axis.
Beyond physical walk-in support, the NSW management has activated a multi-channel helpdesk offering assistance via telephone, WhatsApp and email to address operational issues and resolve platform inquiries.
Management urged stakeholders to utilise the available support services, noting that effective onboarding is central to realising the platform’s full trade facilitation potential.
Platform Aims to Cut Cargo Dwell Time
The NSW is engineered to eliminate manual documentation bottlenecks by integrating all port clearance, regulatory and compliance processes under one digital roof. Authorities say full deployment is expected to reduce the cost of doing business at Nigerian ports and accelerate cargo throughput — objectives that have long ranked among the priorities of the Federal Ministry of Marine and Blue Economy.
Nigeria Watch
The go-live of the National Single Window carries direct implications for operators across the Nigerian port ecosystem. At Apapa and Tin Can Island — where manual documentation cycles and fragmented agency interactions have historically inflated cargo dwell times — the platform’s ability to centralise clearance processes could offer meaningful efficiency gains for importers, freight forwarders and terminal operators alike.
For the Nigerian Ports Authority (NPA) and the Nigerian Shippers’ Council (NSC), seamless NSW adoption among port users will be a key indicator of whether the digital trade agenda translates into measurable reductions in port congestion and logistics costs. NIMASA, whose regulatory mandate intersects with vessel and cargo documentation, will also have a stake in the platform’s integration architecture.
Freight forwarding associations and licensed customs agents — many of whom remain accustomed to manual and semi-manual clearance pathways — will likely represent the largest onboarding challenge. The placement of the support centre on Wharf Road, rather than at a government ministry or agency complex, signals a deliberate effort to meet practitioners where they operate.
The NSW’s full commercialisation also arrives against the backdrop of broader port reform efforts, including ongoing concession reviews and the Federal Government’s push to position Nigerian ports as competitive West African trade hubs. Whether the platform achieves critical mass adoption in its early weeks will depend heavily on the responsiveness of the helpdesk infrastructure now being put to the test.
Waterways News | Lagos
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