Friday 16 October 2026
Afternoon Edition
ZOTPAPER

News without the noise

ZOTPAPER
Geopolitics

Singapore container ship sunk in Strait of Hormuz, yet shippers keep transiting

Analysts say demand for Middle East energy and higher prices still make the passage worthwhile for some operators

By LineZotpaper
Published
Read Time2 min
Two Singapore-flagged container ships were attacked in the Strait of Hormuz this week, one sinking, but maritime analysts say commercial traffic is unlikely to stop because strong demand for Middle Eastern energy and higher prices still make the passage worthwhile for some operators.

Maritime experts say commercial vessels are likely to continue navigating the Strait of Hormuz despite escalating attacks, as strong demand for Middle Eastern energy and commercial opportunities keep some operators willing to take the risk.

The latest attacks targeted two Singapore-flagged container ships: GFS Pride sank after being struck by a projectile and catching fire, while GFS Giselle was damaged. Crew members from both vessels were reported safe.

Collin Koh, a senior fellow at Singapore's S. Rajaratnam School of International Studies, said shipping companies would probably keep looking for opportunities to use the strait.

"I don't see in the short term, that Singapore flagged ships or Singapore shipping companies would necessarily avoid taking the transit if there is an opportunity," Koh told CNBC.

Data from maritime analytics firm Kpler show crossings through the strait fell to 131 in the week ended Oct. 14, from 176 the previous week, although the decline cannot be attributed solely to the latest incidents. Dimitris Ampatzidis, Kpler's maritime risk and compliance manager, said the attacks underscored Iran's continuing ability to threaten commercial vessels, with risks extending beyond oil and gas transportation.

Strong demand for oil, particularly from Asia, continues to give tanker operators an incentive to carry energy supplies from the Persian Gulf, even as security threats complicate voyages. Singapore Foreign Minister Vivian Balakrishnan, speaking at the Milken Institute Asia Summit last week, recounted a conversation with an unnamed Gulf counterpart who said his country was earning more from oil exports than before the war by running a "Hormuz shuttle" of about 20 very large crude carriers, effectively self-insured against attacks.

"Sometimes you get hits, but it is still worthwhile to run the 'Hormuz shuttle,'" Balakrishnan quoted the official as saying.

The Singapore Shipping Association played down the prospect of a broad withdrawal of commercial shipping from the region, suggesting operators would instead adapt to changing trade conditions. Analysts cautioned that further attacks could deter more operators, with the impact likely to vary by vessel type and each company's assessment of the risks.

§

Analysis

Why This Matters

  • The Strait of Hormuz is one of the world's most important maritime chokepoints, and any sustained disruption to shipping affects global energy supplies and prices.
  • Attacks that now extend beyond oil and gas carriers to container ships widen the risk for all types of cargo moving through the Gulf.
  • If more operators pull back, shipping capacity, insurance costs and trade routes could shift in ways that ripple through global supply chains.

Background

The Strait of Hormuz is the only sea route between the Persian Gulf and the open ocean, making it a critical corridor for oil and gas exports to world markets. Regional tensions have produced repeated attacks on commercial vessels in the waterway, and major container lines have largely stayed away, even as some tanker operators continue to transit.

The sinking of GFS Pride and damage to GFS Giselle mark an escalation in the types of ships being targeted, but the economic logic of the passage has not disappeared. Higher oil prices have made some voyages profitable enough that operators are prepared to accept the risk of attack.

Key Perspectives

Ship operators and traders: Strong demand, especially from Asia, and higher crude prices can make transits worthwhile despite the danger. Some operators run so-called Hormuz shuttle services with vessels effectively self-insured against attacks.

Maritime analysts: No broad halt to shipping is expected in the short term. Singapore-flagged ships and companies are likely to keep taking transits when opportunities arise, though each company will weigh its own risk.

Critics/Skeptics: Further attacks could deter more operators, and evidence of caution already exists. Weekly crossings fell from 176 to 131, and major container lines are largely avoiding the strait. The impact of any further escalation could vary sharply by vessel type.

What to Watch

  • Weekly transit counts from Kpler for signs of a steeper decline below 131 crossings.
  • Whether attacks spread beyond Singapore-flagged container ships to other vessel types or nationalities.
  • Movements in insurance premiums and freight rates, which will show whether the economic case for the Hormuz shuttle still holds.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

How we workSubscribe