Container Shipping Trio: 7 Ships Stranded in Strait of Hormuz, Shipping Association Seeks Government Mediation for Departure

Seven container ships from Taiwan's major shipping companies, including Evergreen, Wan Hai, and Yang Ming, are currently stranded in the Strait of Hormuz due to the escalating Middle East conflict. The Taiwan Maritime Shipping Association, led by Evergreen Chairman Chang Yen-yi, is planning to engage with the government to seek mediation with Iran for the departure of these vessels. Yang Ming Chairman Tsai Feng-ming revealed that obtaining permission from the Iranian government is necessary for the ships to leave. However, insurance companies' policies prohibit private payments to the Iranian government, and the inherent risks in the maritime area mean that departure is difficult without insurance coverage. The situation is described as a stalemate. The association hopes the government can assist in negotiating with Iran through various channels to secure departure permits. Regarding freight rates, Yang Ming stated that due to rising oil prices, current rates are insufficient to cover costs. Rates are expected to increase, with potential early pull-in of demand in Q2 and Q3. Rate increases are being pushed from May, and annual contract negotiations are nearing completion with prices higher than last year.