en.Wedoany.com Reported - Danish shipping company D/S NORDEN stated in its first-quarter 2026 interim report that the ongoing Persian Gulf conflict and the disruption of the Strait of Hormuz are having starkly different impacts on the global shipping market: the dry bulk business is suffering heavy losses, while tanker earnings are surging significantly.
The company indicated that the losses in the dry bulk business are due to regional positioning and the Persian Gulf conflict, with the closure of the Strait of Hormuz and a one-time regional fuel premium directly impacting earnings. Six dry bulk vessels remain trapped inside the Persian Gulf, leading to significantly higher operational and insurance costs. NORDEN expects these costs could persist until the end of 2026, adding approximately $30 million in extra expenses for its dry bulk business this year. First-quarter dry bulk EBIT plummeted to a loss of $45 million, compared to a profit of $17.6 million in the same period last year.
The report stated that although Middle Eastern cargo volumes have declined as the crisis intensifies, the vessels trapped in the Persian Gulf have actually tightened global shipping supply, partially offsetting the weak demand. "In the weeks following the closure of the Strait of Hormuz, this led to some dislocation in freight rates as market participants adjusted to higher fuel costs and changing trade patterns."
Meanwhile, tanker performance strengthened significantly. With crude oil exports collapsing and several countries imposing export restrictions, tanker demand east of Suez weakened; however, Western refineries became the primary suppliers of petroleum products to the rest of the world, causing freight rates in the Atlantic basin market to surge. NORDEN has redeployed vessels to the Atlantic basin and the U.S. Gulf of Mexico to capitalize on arbitrage opportunities triggered by the disruption. Quarterly tanker EBIT grew 139% year-on-year, reaching $47.3 million.
NORDEN warned that the continued closure of the Strait of Hormuz will eventually put downward pressure on tanker freight rates, as more vessels are redeployed from the East, while reduced oil exports begin to drag on overall demand. High oil prices could also weaken broader economic growth and oil consumption. However, a future normalization of traffic through the Strait of Hormuz could trigger a significant global restocking cycle, which would support tanker demand once Eastern refineries resume operations. CEO Jan Rindbo stated: "Given the current Persian Gulf conflict, the short-term outlook remains highly uncertain."
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
