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Business20 June 2026 - 05:00

Shipping lines face massive crew change, cargo recovery challenge

Re-opening of the Strait of Hormuz however gives hope to Kenya’s trade, fuel prices

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by MARTIN MWITA
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Kenya Ships Agents Association CEO Elijah Mbaru/HANDOUT




Global shipping lines are expected to prioritise the relief of thousands of seafarers stranded at sea for months following the reopening of the Strait of Hormuz.

This is after the United States and Iran agreed to extend a ceasefire that has brought a halt to months of conflict in the Gulf region.

The agreement comes after US President Donald Trump and Iranian President Masoud Pezeshkian electronically signed a memorandum of understanding extending a ceasefire in the US-Iran war and paving the way for the reopening of one of the world's most critical shipping corridors.

The Kenya Ships Agents Association (KSAA) yesterday said the reopening of the Strait of Hormuz will trigger a massive logistical operation, as shipping companies race to restore normal trade flows and address a growing humanitarian crisis involving stranded crews.

KSAA chief executive Elijah Mbaru said more than 20,000 seafarers aboard hundreds of vessels have been caught up in the disruption, with some having remained at sea for over 100 days, with some already having expired contracts.

"Shipping lines will first have to attend to crews whose contracts have expired and who have been stranded at sea for months. Many seafarers have remained onboard beyond their contractual obligations because vessels could not safely transit through the Gulf," said Mbaru.

According to the association, about 500 vessels, including crude oil tankers, container ships and general cargo carriers, have been affected since the conflict erupted in late February.

Beyond crew welfare, shipping companies now face the daunting task of repositioning vessels that were diverted from their original routes, recovering cargo stranded in alternative ports and restoring schedule integrity across global shipping networks.

"Shipowners will be dealing with a multitude of challenges simultaneously. These include moving vessels that may have missed annual and quarterly survey obligations, delivering cargoes that have been stranded for months, addressing claims arising from failed contractual obligations and resolving disputes with charterers of affected vessels," Mbaru said.

The executive noted that many ships were forced to deviate from normal routes during the conflict, leading to cargo being discharged at alternative ports far from their intended destinations.

As a result, shipping firms will now have to organise the transfer of cargo to its original destinations, while attempting to meet pent-up demand from importers and exporters who have experienced significant delays.

The Strait of Hormuz handles nearly a fifth of the world's oil trade and serves as a vital gateway connecting Gulf producers to global markets.

Its closure during the conflict sent freight rates soaring, disrupted supply chains and heightened concerns over global energy security.

Under the ceasefire agreement brokered with the support of Pakistan, Iran reaffirmed its commitment not to develop nuclear weapons while both sides agreed to end hostilities and pursue broader negotiations on sanctions, nuclear issues and frozen Iranian assets.

Industry players expect shipping traffic through the Strait of Hormuz to resume gradually over the coming weeks, although full normalisation could take several months as carriers work through vessel backlogs, crew changes and cargo recovery operations.

For shipping companies, however, the immediate priority remains bringing relief to thousands of exhausted seafarers who have borne the brunt of one of the most disruptive maritime crises in recent years, Mbaru noted.

Re-opening has given hope to economies such as Kenya, which have been hit hard by high fuel prices, costly goods and an impact on exports.

IMF has since lowered Kenya's 2026 economic growth forecast to 4.5 per cent, down from 4.9 per cent due to rising inflation, high energy costs from the Middle East conflict shocks and reduced export demand.

While GDP is expected to reach $147.26 billion (Sh19 trillion), growth is slowing, with inflation anticipated to average 5.9 per cent. 

Kenya’s exports mainly tea, coffee and other agricultural produces have been affected with longer delivery time and high shipping costs also affecting raw material imports and other commodities, with local industry also hit.

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