The costs of chartering tankers to move oil from the Middle East to Asia have climbed and ship bookings have slowed as the Israel-Iran conflict fuels worries of potential disruptions, industry sources told Reuters on Monday.

The global benchmark rate for a very large crude carrier (VLCC) moving oil from the Middle East Gulf (MEG) to Japan, known as TD3, rose over 20% on Friday after the tensions broke out, according to LSEG data.

On Monday, the MEG-Japan rate for crude held steady at about W55 on the Worldscale industry measure, according to a shipbroker.

However, further gains in freight rates were limited as traders, shipbrokers and charterers take a wait-and-watch stance even as market participants said they did not expect the Strait of Hormuz, a key shipping passage, to be shut.

"Fixing on Friday from the region all but came to a standstill. Physical marks may therefore not be indicative. Ships inside the gulf are still looking for outbound charters," said Anoop Singh, global head of shipping research at Oil Brokerage.

"But the situation remains dynamic, and we expect to hear more on market open today," said Singh.

"We have noted a minor increase in freight rates so far, but expect them to rise further as the week progresses," according to Sentosa Shipbrokers.

Emril Jamil, senior analyst for crude and fuel oil at LSEG Oil Research, said freight rates will depend on any continued escalation and potential action by Iran on the Strait of Hormuz. About 18 million to 19 million barrels per day of oil and oil products flow through the waterway, which connects the Gulf to the Gulf of Oman.

"The war risk premium is expected to remain high in the near-term given the continued exchange of tensions between the two countries. This will exponentially rise if other Middle East oil and gas infrastructure are attacked," said Jamil.

He added that cargo insurance premiums could range from an additional $3 to $8 a barrel if there are further attacks.

For clean products, freight rates to ship around 90,000 tons of either gasoline, diesel or jet fuel from the Middle East to markets west of the Suez Canal were at $3.3 million to $3.5 million late last week, before the conflict, according to estimates from three shipping sources, but new offer levels have yet to emerge.

Some brokers are already giving market indications at $4.5 million levels, according to one Singapore-based trade source.

Several shipowners are holding back offering vessels for routes in the Gulf until the situation becomes more clear, which may increase opportunities for voyages from the Far East to the west of Suez and from northwest India, Sentosa shipbrokers said in a note to clients.

Fire on a Containership Off the Coast of India

A major fire broke out aboard the Wan Hai 503, a Singapore-flagged containership off India’s west coast. Of the 22 crew members, 18 have been rescued, while 4 remain missing. Two survivors are reported to be seriously injured.

The fire started in a container and quickly spread. The vessel was carrying hazardous materials, including flammable liquids, toxic substances, and self-combustibles. Explosions were reported onboard, and several containers fell overboard.

The situation remains critical — dense smoke is rising and the risk of secondary explosions is high.

ONE Marvel and MSC Ambra diverted to assist. Indian Navy and Coast Guard ships, along with aircraft, are actively working at the scene. Survivors are being taken to New Mangalore Port.

The deal includes two firm orders and an option for 2 more additional ones, each with a capacity of 3,000 TEU.

Founded in 2009, Hai An has 17 container ships in its fleet.

The company says it intends to expand its presence in the Mediterranean, Europe and the US West Coast in the coming years.

Translated with DeepL.com (free version)

China and Colombia should seize the latter's formal accession to the Belt and Road Initiative as an opportunity to improve the quality and level of bilateral cooperation, Chinese President Xi Jinping said Wednesday.

Xi Jinping made the statement during a meeting with Colombian President Gustavo Petro, who is in Beijing to attend the fourth ministerial meeting of the China-CELAC Forum /Community of Latin American and Caribbean States/.

After the meeting, the two heads of state witnessed the signing of a cooperation plan between the two governments to jointly build the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

The U.S. and China agreed to reduce tariffs for 90 days, pausing the trade war and boosting global stock markets. U.S. tariffs will drop from 145% to 30%, and China’s from 125% to 10%.

While markets cheered the move, uncertainty remains. Core issues like trade imbalances, subsidies, and the fentanyl crisis remain unresolved. Businesses are cautious despite the relief.

Some companies are resuming shipments but remain wary of long-term policy shifts.