Manage force majeure and supply chain risks

Disruptions affecting the Strait of Hormuz are increasing pressure on global shipping routes, raising force majeure concerns and creating new challenges for energy and logistics supply chains. Companies involved in Gulf trade should reassess their contracts, insurance coverage and contingency plans to manage force majeure risks and supply chain disruptions.

Recent security incidents and interference with shipping in the Strait of Hormuz have significantly disrupted commercial shipping activity, raising concerns for global energy supply chains and maritime logistics networks. The situation prompts a rapid reassessment of contractual obligations, insurance coverage and operational risk management among shipping companies, energy producers and commodity traders.

Although international maritime law continues to guarantee transit rights across the Strait, the practical operational environment has become increasingly complex. Shipowners, charterers, insurers and cargo interests must now assess whether voyages remain commercially and operationally viable under changing risk conditions.

For companies that rely on Gulf energy exports or regional shipping routes, the disruption is sparking renewed attention to force majeure clauses, charter party risk allocation and insurance exposure.

Strait of Hormuz: an essential global energy transit route

THE Strait of Hormuz remains one of the most important maritime chokepoints in the world. According to the U.S. Energy Information Administrationabout 20 million barrels of oil per day passed through the strait in 2024, representing about 20% of global petroleum liquid consumption. The corridor also carries almost a fifth of the world’s liquefied natural gas (LNG) trade, mainly from QatarEnergy.

Alternative export routes exist but remain limited. Pipelines such as the East-West Pipeline operated by Saudi Aramco and the Abu Dhabi Pipeline provide partial bypass capacity, but analysts say these routes can replace only a small portion of the volumes normally shipped through Hormuz.

As a result, any disruption affecting the strait has immediate implications for global energy markets and maritime logistics.

Maritime security developments affecting maritime activity

Maritime risk levels in the Gulf have increased in recent weeks following reported attacks on commercial vessels and continued electronic interference affecting navigation systems.

Updates published by the Joint Maritime Information Center indicate that maritime risk in the region has reached a critical level, with confirmed incidents involving commercial vessels and continued reports of interference with GPS and AIS signals.

These conditions have led many operators to delay or reassess their cross-strait voyages, resulting in a sharp reduction in maritime traffic observable during parts of March.

The issue has also reached international regulatory forums. On March 19, 2026, the International Maritime Organization summoned a special session of the council in London to address maritime security concerns and explore mechanisms to support safe passage for commercial shipping.

Industry bodies such as the International Chamber of Shipping having supported initiative and called for measures to ensure the safety of seafarers and the continuity of global trade routes.

Contractual implications: Force majeure and performance risk

The current situation is also testing the resilience of commercial contracts in the energy and shipping sectors.

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Force majeure clauses, typically included in commodity sales agreements and long-term LNG supply contracts, allow parties to suspend their contractual obligations when extraordinary events prevent performance. However, the applicability of these provisions depends on the precise wording of the contract and the ability of the relevant party to demonstrate that the event actually prevents delivery rather than simply increasing costs.

In the energy sector, QatarEnergy would have declared force majeure on certain LNG contracts following damage affecting export capacities and operational disruptions.

Such statements can have cascading effects across entire supply chains. When a seller invokes force majeure in connection with a supply contract, associated shipping arrangements (such as charter contracts) may be suspended or canceled.

Charter contracts and navigation risk

In shipping contracts, risk allocation is often governed not by force majeure provisions, but by war risk and safe harbor clauses contained in charter agreements.

These clauses, largely standardized thanks to the contractual frameworks developed by BIMCO, allow shipowners to refuse orders that would expose a ship, crew or cargo to high security risks.

Where such clauses apply, charterers may be required to offer alternative routes or ports, or to negotiate adjustments to freight rates and insurance premiums.

In practice, disputes often arise as to whether the shipowner’s decision to avoid a particular route was reasonable under the terms of the contract.

Insurance implications and rising premiums

Insurance markets also respond quickly to developments in the Gulf.

The Joint War Committee of the London Insurance Market recently revised its list of high-risk maritime areas, thereby expanding the designated areas in the region. This classification generally triggers additional insurance premiums for vessels entering affected waters.

At the same time, insurers emphasize that standard protection and compensation coverage does not include war risk liabilities. Organizations such as Britannia P&I note that separate war risk insurance policies are required to cover incidents arising from security-related maritime events.

To support the continuation of maritime transport activities, insurers are studying new coverage methods. For example, Chubb recently announced a marine insurance mechanism designed to support vessels transiting the Gulf under high-risk conditions.

However, the availability of coverage does not necessarily guarantee its affordability, as premiums can increase significantly during periods of increased risk.

Supply chain and logistics implications

While energy transportation remains the sector most directly affected, broader logistics networks are also experiencing repercussions.

Container shipping operators are reporting disruptions to depot operations, container repositioning and inland logistics at Gulf ports. Companies like Maersk have issued notices highlighting operational adjustments and additional surcharges related to the situation.

Global logistics markets are also adapting. Analysts note that disruptions affecting Gulf shipping routes may indirectly reduce air cargo capacity and increase transportation costs on alternative supply corridors.

What businesses should watch out for

Companies with exposure to Gulf trade routes or regional energy supply chains may wish to consider several key areas:

• Contractual provisions: Review force majeure clauses, safe port obligations and war risk provisions in supply agreements and charter contracts;
• Insurance coverage: Confirm whether existing policies adequately address maritime security risks;
• Shipping alternatives: Evaluate contingency plans, including alternative supplies, pipeline routes or inventory adjustments; And
• Operational guidance: Monitor updates from maritime authorities, insurers and industry organizations regarding shipping risks in the region.

Outlook

In the short term, the priority of regulators and industry players is to stabilize shipping conditions and ensure safe transit through the Strait of Hormuz.

Efforts coordinated by the International Maritime Organization could help establish a framework for safe shipping, but the timeline for restoring normal commercial operations remains uncertain.

Longer term, these disruptions could accelerate broader trends already shaping global energy and logistics networks, including supply diversification, infrastructure investments, and increased attention to the allocation of contractual risks.

For businesses involved in global trade, the current situation highlights the importance of carefully drafted contracts, comprehensive insurance coverage and robust contingency planning when operating in strategically important maritime corridors.

Companies involved in Gulf trade and energy supply chains face growing uncertainty as disruptions in the Strait of Hormuz affect shipping routes, insurance costs and contractual obligations. Our specialists advise businesses on managing force majeure risks, reviewing commercial contracts and strengthening supply chain contingency planning in the region. To arrange a consultation, contact dubai@dezshira.com.