No casualties reported for crews on Cyprus managed vessels

Cypriot shipping companies with vessels stranded in the Persian Gulf and the Gulf of Oman due to Iranian threats in the Strait of Hormuz have so far reported no direct hits, casualties or crew losses, Cyprus Shipping Chamber (CSC) director general Alexandros Iosifidis said.

Speaking to Cyprus News Agency (CNA), Iosifidis said some chamber members had ships affected in the area, including large cruise vessels carrying thousands of passengers and crew, although none had reported injuries or damage so far.

“The good news,” he said, “is that no one has informed us that their ships were either hit directly or there was collateral damage, they have not informed us that they had any crew losses.”

He said the chamber’s main concern remained the safety of seafarers trapped in the region, adding that companies were trying to support both crews and their families.

The Deputy Ministry of Shipping has said that 19 Cyprus-flagged ships are blocked in the area and are safe.

Iosifidis, however, noted that the chamber’s concern extends beyond flag, as it represents ships managed or owned by Cypriot interests regardless of registration.

He said some companies with stranded cruise ships were trying to charter aircraft to transport passengers and crews out of the region, which he said number several thousand.

One company, he added, has already repatriated a Cypriot trainee from a vessel.

Iosifidis said there was still no complete picture of how many people linked to Cyprus-based shipping companies were affected, although he estimated the number ran into the thousands.

He referred to figures from the International Maritime Organisation (IMO) showing around 35,000 seafarers and passengers stranded in the wider area.

Although the Strait of Hormuz remains open, he said Iranian threats against vessels attempting to pass through it had effectively halted movements by serious operators.

“There is a risk,” he said, adding that none of the chamber’s members were attempting to move ships out of the Persian Gulf under current conditions.

He said some vessels in the Gulf of Oman had also taken shelter in safe areas and were waiting for an opportunity to leave, with companies carrying out risk assessments and issuing instructions in consultation with captains and crews. No ship, he added, was currently trying to enter the Persian Gulf.

On conditions onboard, Iosifidis said ships had taken refuge either in ports or other safe havens and continued to receive supplies as far as wartime conditions allowed. They were not completely isolated, he added, and the same applied to vessels in the Gulf of Oman.

Turning to the impact on the industry, he said the first consequences were already visible, with some insurers withdrawing war-risk cover and shipping companies now expected to renegotiate insurance at higher cost.

He also said vessels being stranded created additional administrative and commercial complications between owners and charterers over who would bear the cost, although such matters would be settled through charterparty agreements.

For the time being, he said, the impact remained manageable. He added that “if the conflict drags on, companies with ships in the region would face more serious disruption, as vessels would remain unable to trade, freight income would be lost, and operators would have to deal with obligations linked to cargoes and unfulfilled contracts.”

As for the broader Cypriot economy, Iosifidis said the direct effect was likely to be limited. Cyprus does not have significant trade exposure to the region, nor does it import oil directly from there, he said, although economies in East Asia would be more heavily affected given their dependence on Gulf energy supplies.

He added that cargoes from China and East Asia destined for Cyprus were in any case already avoiding the area, as most shipping had continued to sail around southern Africa rather than resume regular use of the Suez Canal because of Houthi attacks in the Red Sea.

“I do not foresee a particular impact on our own economy,” he said, although he cautioned that wider uncertainty could still push up freight rates more broadly.

Iosifidis said the situation was not expected to materially affect shipping’s contribution to the Cypriot economy, as most companies would continue operating as normal and, if necessary, redeploy vessels to other regions.

Only ships stranded in the affected area, he concluded, were “likely to face a more immediate problem.”