Strait of Hormuz – Great Expectations of a Narrow Passage 4 March 2026

Stakeholders will be looking out for daily updates from the relevant authorities and regulatory bodies including their insurers. In this respect, immediate charterparty concerns (discussed in detail here), are growing prevalent, including concerns around deviation and safe port considerations. The existence of any express liberty clause or an implied right to deviate for the safety of the vessel, crew and cargo and whether a deviation is ‘reasonable’ are all aspects which will require careful consideration. It should be noted however, that an unreasonable deviation may deprive the carrier of contractual rights and may result in P&I cover being lost. Parties are therefore advised to consult with their insurers along with all parties involved in the voyage before such decisions are made. Critically, owners should monitor the position carefully and record their reasoning to mitigate any exposure vis-à-vis allegations of unreasonable deviation.

Similarly, the question of whether parties may be able to successfully employ force majeure clauses in their charterparties or to rely on the legal doctrine of frustration, are all entirely pertinent.

Where BIMCO War Risks Clauses of 2025 for time and voyage charterparties have been incorporated, owners would, in principle, be entitled to rely on those provisions if transit through the Strait or operations in the surrounding region expose the vessel to war risks. In such circumstances, a refusal to comply with charterers’ employment orders may well be contractually justified. Read more on insurance-related considerations here.

The geopolitical situation is in flux and amidst the uncertainty, parties must be aware of their rights and obligations, the risks assumed or imposed and all the legal implications.