Hormuz, Sanctions, and New Green Shipping Rules: Freight Pulse & Law Update
Hormuz traffic remains near 5% of pre-war levels, LNG exports are largely stalled, and new sanctions and customs rules are raising compliance requirements across global freight.
Why is the Strait of Hormuz still disrupting freight?
The Strait remains a severe chokepoint. QatarEnergy has extended force majeure on selected LNG deliveries into November, while crude flows continue through a combination of shuttle tankers and pipeline bypasses. Oil has alternatives; LNG does not.
Key facts:
Traffic: Roughly 5% of pre-war vessel levels.
LNG: Qatar exports remain substantially constrained.
Crude: Partial movement continues through alternative infrastructure.
How do sanctions and CBP’s new areas change compliance?
On August 28, West P&I warned that expanded U.S. sectoral determinations create increased secondary-sanctions risk for non-U.S. parties operating in or supporting Iran’s shipping sector. Owners, charterers, brokers, insurers, port providers, and financiers should recheck counterparties and beneficial ownership.
Effective August 25, CBP also established four Customs-Enforcement Areas, extending specified enforcement authority out to 24 nautical miles. Expect closer scrutiny of cargo declarations, crew documentation, vessel movements, and sanctions-related records.
What does South Korea’s green-shipping law require?
South Korea’s Green Shipping Corridor Act is widely described as the world’s first dedicated green shipping corridor law. Its draft enforcement decree addresses qualifying fuels, environmentally friendly ports, corridor designation, and implementation plans. The Act is scheduled to take effect April 1, 2027, with public consultation on the decree beginning September 2.
What should shippers audit now?
Separate LNG exposure from crude exposure, update Iran-related screening, and map Korean trade lanes against future corridor requirements. As a DOT compliance reminder, CVSA Brake Safety Week wrapped August 29; keep brake inspection, repair, and DVIR records audit-ready year-round.
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