(Bloomberg) — Two fully laden Chinese oil tankers are waiting near the Strait of Hormuz, putting them in a position to become the first such vessels to leave the Persian Gulf under a day-old US-Iran ceasefire, even as shipowners scrutinize the status of the narrow waterway.
The Cospearl Lake, a very-large crude carrier linked to China’s state-owned Cosco Shipping Corp., and He Rong Hai, owned by a smaller entity, appeared to be traveling east early on Thursday morning at near top speeds, according to ship-tracking data, before coming to a virtual halt. Both are signaling Chinese ownership on their tracking systems, a move typically done for safety during Iran-approved transits.
The tankers are part of a growing armada amassing at the entrance to the strait, off the United Arab Emirates. A Saudi Arabian-flagged VLCC, the Jaham, has moved east toward a nearby holding area off Dubai. They join two Indian-flagged, fully-laden supertankers that have been in the area since late March — the Desh Vibhor, which is off Ras Al Khaimah, and the Desh Vaibhav, which is near Dubai.
Iran and the US agreed to a pause in fighting in exchange for the opening of the strait, but there is still little clarity on details. Continued attacks — including Israeli strikes in Lebanon — have raised questions about the effectiveness of a ceasefire. Since the truce — and supposed opening of the strait — was announced a day ago, there has also been little change in traffic.
The Chinese and Saudi vessels’ shifts in positions along the gulf underscore their intentions to cross the strait after having been locked up in the inland sea for weeks, but their journeys onward remain uncertain.
Shipowners said on Thursday that they were still waiting on details on how safe passage can be carried out. Iran warned vessels on Wednesday in radio transmissions that transits still required permission from Tehran, while Iranian media has also reported the country has designated routes for vessels to transit Hormuz, with both inbound and outbound passages circumventing Larak Island in the strait.
Japan’s Mitsui OSK Lines Ltd., one of the world’s largest shipping companies, is among the groups trying to understand the fine print and arguing it needs to see “sustainable stability” before sending its vessels through.
“How it is implemented in the water, that is something we really need to understand,” Jotaro Tamura, the firm’s new president, told Bloomberg Television.
The Chinese ships are already notable for their cargoes. One is carrying Iraqi crude, and the other Saudi. While Iran has referred to “brotherly” Iraq, most other transits have been granted to friendly nations.