Though the announcement of the U.S.–Iran peace agreement has been welcomed as good news, Indian shipowners were cautious, just like international shipping companies. “It’s too early to say anything. We have to wait for the agreement to be signed, and then clarity has to emerge on the terms and conditions,” says Anil Develi, CEO of Indian National Shipowners Association, adding uncertainty continues.

Mr. Devli said if things go well, it would take another 30 to 60 days for full normalcy. “We hope and expect the government to facilitate getting the vessels back,” he said.

Meanwhile, the Bharat Maritime Insurance Pool, that came with a sovereign guarantee of $1.4 billion for providing re-insurance, has been a non-starter, says Mr. Devli. He added that one Indian shipowner had received a quote from a public sector company and it turned out to be more than London rates, despite the government offering to bear re-insurance costs.

Blaming the situation on lack of trust and transparency on the part of both shipowners and Indian insurance companies, Tony Fernandez, who has nearly 50 years of experience in insurance, says it was quite possible that, because of audit fears, the public sector insurer could have transferred even the remaining risk to other parties, thereby increasing the cost of insurance. Mr. Fernandez said that this has been an old problem in the insurance industry and has plagued the current effort to mitigate war-risk insurance too.

Naval support

Meanwhile, the government has identified 34 vessels of Indian interest carrying various flags. These include 16 vessels carrying fertilizers, including one Indian-flagged ship, Jag Arnav. Fertilizer supplies are critical for the ongoing kharif season. Nine energy supply vessels have been identified by the government for evacuation – three are Indian-flagged and six are foreign-flagged.

The government has also been keen on LNG ships, since natural gas is a key component in making fertilizers domestically. The Marshall Islands-flagged LNG carrier Al Ghashamiya transited the Strait of Hormuz on June 16. The vessel is bound for Dahej, carrying more than 90,000 tonnes. For the purpose of evacuation of these vessels, the government is considering naval escorts and other protective measures for safe exit.

Thirteen Indian-flagged vessels are still in the Persian Gulf, west of the Strait of Hormuz; nine are in the Gulf of Oman; three in the Gulf of Aden; and eight in the Red Sea area. These include five crude oil carriers, one LPG carrier, three bulkers, and two container ships.

In total, 539 Indian seafarers are on Indian-flagged vessels (325 in the Persian Gulf region west of the Strait of Hormuz and 214 in the Gulf of Oman). So far, more than 3,600 Indian seafarers have been evacuated by various shipping companies from the Gulf region.

Indian-flagged vessels have faced four incidents, while 19 incidents involving Indian-crewed vessels were reported. So far, seven confirmed Indian seafarer deaths have been reported. Four have been injured, and one is presumed dead.

Stranded cargo

According to the latest assessment of the government, a substantial volume of cargo is currently stranded or awaiting evacuation across ports. At major ports, the volume comprises 11,299 TEUs of containers and 1,771 TEUs of perishable cargo. At non-major ports, including Mundra, Pipavav, and Hazira, 28,891 TEUs of containers and 1,368 TEUs of perishable cargo are awaiting evacuation.

In total, more than 43,000 TEUs of cargo, including over 3,100 TEUs of perishable goods, remain affected.

The government has put in place several measures to reduce congestion at ports due to shipping delays. Additional storage has been allocated for cargo handling requirements, along with extended support for stacking cargo within the port area to avoid unnecessary movement and minimize additional costs for customers.

The relief measures are expected to provide immediate operational and financial support to the trade community while helping ports manage congestion, preserve time-sensitive cargo, and maintain the smooth flow of maritime commerce.