Hormuz conflict leaves global shipping in crisis mode, says Hadjimanolis

Global shipping remains in “crisis mode” as fighting between the US and Iran disrupts the Strait of Hormuz, forcing companies to reconsider routes, absorb rising costs and protect crews operating near conflict zones, Cyprus Shipping Deputy Minister Marina Hadjimanolis warned. In an interview with journalist and international author Andrea Busfield for The European, Hadjimanolis described an industry whose responsibilities have expanded far beyond the traditional management of vessels. “When routes become unsafe, ship managers become crisis coordinators,” she told Busfield, noting that while public attention focuses on military and geopolitical developments, “the critical work undertaken by the civilian maritime sector often remains less visible”. Commercial traffic through the Strait of Hormuz, which normally handles around a fifth of the world’s oil and gas supplies, has been severely disrupted. At the same time, continuing instability in the Red Sea has complicated one of the principal trade routes connecting Europe and Asia. Where possible, vessels are being diverted around the Cape of Good Hope, adding thousands of miles to voyages and increasing fuel consumption, transit times and operating costs. Others remain on heightened alert as companies assess whether passage through the Gulf is still viable. Each decision carries commercial, legal and human consequences. Hadjimanolis explained that shipping managers must “reassess routing, manage risk exposure, liaise with flag states, charterers, insurers and crews, and ensure compliance with sanctions and security requirements”, often while working under intense pressure and with limited certainty about how conditions may change. The challenge no longer ends once a safer route has been identified. Operators must navigate war-risk insurance, sanctions, environmental rules, cyber threats and changing compliance obligations, while supporting seafarers whose contracts may be extended because vessels can no longer follow their original itineraries. “Beyond routing decisions, managers must address crew fatigue, extended contracts, mental health concerns, complex insurance conditions, rapidly changing compliance obligations and heightened scrutiny from multiple authorities,” Hadjimanolis said, adding that “although much of this work happens quietly, it remains critical to keeping global trade moving.” Cyprus has found itself close to the operational centre of these disruptions. The island hosts the largest ship-management centre in the European Union, bringing ship managers, technical and crewing specialists, maritime lawyers, insurers, financiers and regulators together within the same maritime cluster. Shipping contributes more than 7 per cent of Cyprus’ GDP, while ship management alone accounts for approximately 5.5 per cent. The sector generated more than €1 billion in revenue during the second half of 2025, its highest level on record. Although Cyprus cannot rival traditional maritime powers in size, Hadjimanolis argued that its value lies in its ability to respond quickly. The island’s operational importance, she explained, comes from its position as “a trusted, responsive and strategically positioned maritime hub at the crossroads of Europe, the Middle East and the Eastern Mediterranean”. “In times of crisis, what matters is not only size or historical prominence, but the ability to act quickly, coordinate effectively and maintain stability and continuity for global shipping operations,” she added. This is not the first time Cyprus has assumed such a role. During the 2006 Lebanon war, the island became a major evacuation hub for tens of thousands of foreign nationals. During the Covid-19 pandemic, it was among the first countries to facilitate crew changes while border closures left hundreds of thousands of seafarers trapped aboard vessels. Shipping companies have since faced a relentless succession of challenges, including sanctions following Russia’s invasion of Ukraine, attacks on commercial vessels in the Red Sea and renewed disruption around Hormuz. Together, these crises have shown why “planning and coordination are essential to maritime resilience”, according to Hadjimanolis, particularly because shipping operates within a global network where disruption in one corridor can quickly spread across supply chains. The experience of recent years has also reinforced the importance of preparation before a crisis reaches its most dangerous point. Hadjimanolis said that the successive shocks affecting the industry emphasised the need for “preparedness, coordination and operational resilience”, while demonstrating Cyprus’ ability to provide practical support whenever the international maritime community faces threats to stability and continuity.