Hormuz Sinokor Warning: What Changes? (World Briefing 10/29)

1 November could be a pinch point for shipping. Iran’s Persian Gulf Strait Authority (PGSA) warned that every vessel of South Korean shipowner Sinokor will face “legal action” from 1 November, and the same day from 5 p.m. Pacific time port watchmen at Los Angeles and Long Beach could go on strike. Brent climbed back to $115.32 a barrel on 28 October, and Drewry’s World Container Index (WCI) is at a 15-week high.

Key points

• Hormuz: the PGSA said Sinokor vessels had the most transit violations over the past three months, that action had already been taken against at least seven, and that its whole fleet faces legal action from 1 November (Reuters). The Korea Shipowners’ Association said the ships involved were not owned by Sinokor but sub-chartered to an overseas oil company.
• Oil: Brent settled up $1.44 (1.26%) at $115.32 on 28 October and WTI up $2.88 at $102.78 (Xinhua).
• US West Coast ports: about 250 ILWU Local 26 watchmen authorised a strike. Employer group PMA says they work at terminals handling about 85% of Long Beach cargo and 33% of Los Angeles cargo.
• Container rates: the WCI rose 2% to $4,585 per 40ft on 22 October, with Shanghai-Los Angeles at $8,007 and Shanghai-New York at $10,166 (Drewry).
• US port fees and the EU parcel fee: unchanged since our last briefings. See the 10/28 briefing and the 10/27 briefing.

Main stories

What is Iran threatening to do to Sinokor ships?

The PGSA warned cargo owners, stakeholders and insurers that legal action will be taken against all Sinokor vessels from 1 November. It did not say what form that action would take.

According to Seatrade Maritime, it is the first time the PGSA has issued a warning covering a shipowner’s entire fleet. The authority says ships on its non-compliance list face restrictions on future passages, including fines, detention or confiscation. Sinokor ships were also on a list of 45 tankers Iran published in August for breaking its transit rules.

The Korea Shipowners’ Association said, citing a Sinokor official, that the vessels in question were sub-chartered to an overseas oil company and carried only foreign seafarers. Sinokor was unaware of the separate legal action warning and was checking the details.

Sources: Reuters (via Yahoo), Seatrade Maritime

Are oil prices rising again?

Yes. Brent, which fell to $113.88 on 27 October on hopes for the Tehran talks, rose to $115.32 on 28 October. WTI gained 2.9% to $102.78.

CNBC linked the gain to investors weighing a longer conflict with Iran. How expensive it is to move crude is covered in the 10/28 briefing.

Sources: Xinhua, CNBC

Will LA and Long Beach stop on 1 November?

It is not decided. ILWU Local 26 said its members may strike from 5 p.m. Pacific time on 1 November, when their contract extension expires, but talks continue with federal mediators (FMCS).

Watchmen are only about 2% of the ILWU workforce at the two ports. PMA warned, however, that other ILWU members are not expected to cross picket lines, which could halt vessel, yard and gate work at the affected terminals. The union’s notice named eight terminal locations, including APM Terminals, LBCT, TTI and SSA. The two ports handled a record 2.04 million TEU combined in September.

Sources: FreightWaves, gCaptain, World Ports Organization

How far have container rates risen?

Drewry’s WCI rose for a second week to $4,585 per 40ft on 22 October, its highest in 15 weeks. US lanes remain the most expensive.

Shanghai-Rotterdam rose 3% to $3,632 and Shanghai-Genoa 5% to $4,152. Drewry expects Asia-Europe rates to edge up as blank sailings rise from two to eight next week, and transpacific rates to hold steady on US import demand. Only two containerships sailed into the Gulf that week.

Source: Drewry WCI

What it means for importers and exporters

• Middle East cargo: higher Hormuz transit risk can push up war-risk premiums and surcharges. Ask carriers and insurers now what terms apply after 1 November (BAF guide).
• US West Coast imports: cargo arriving at LA-Long Beach in early November could be delayed at the terminal if a strike happens. Check alternatives and timing with your forwarder.
• Freight quotes: Shanghai-Los Angeles is above $8,000. Confirm quote validity and which surcharges are included.
• Selling into the EU: the €2 handling fee per customs item starts on 1 November (10/27 briefing).

Check now: insurance terms for Middle East cargo, the outcome of the LA-Long Beach talks, and the validity of quotes on key lanes.

The next day’s update continues in the 10/30 briefing on Hormuz tanker mine claims.

FAQ

Can ships that are not Sinokor’s be affected?

The PGSA named Sinokor vessels, but the ships involved are reported to be sub-chartered to an overseas oil company, so charterers, cargo owners and insurers may be exposed too. The PGSA also keeps a separate non-compliance list (123 entries, per Seatrade).

Is the LA-Long Beach strike confirmed?

No. A strike has been authorised, but as of 28 October none had begun and negotiations were continuing.

Do WCI rates include surcharges?

Under Drewry’s methodology the WCI reflects agreed rates including BAF and other ocean surcharges, plus terminal handling charges where customary. Inland transport is excluded.

Press coverage and sources

• https://www.yahoo.com/news/articles/iranian-strait-authority-says-sinokor-121850391.html (Reuters, PGSA warning and Korea Shipowners’ Association response)
• https://www.seatrade-maritime.com/security/iran-s-hormuz-authority-blacklists-entire-sinokor-fleet (Seatrade Maritime, first fleet-wide PGSA warning)
• https://english.news.cn/20261029/279ec84332204907a8e9ddfe97bc8124/c.html (Xinhua, oil settlement on 28 October)
• https://www.cnbc.com/2026/10/28/oil-price-today-wti-brent-hormuz.html (CNBC, oil on 28 October)
• https://www.freightwaves.com/news/strike-threat-by-port-security-workers-at-los-angeles-long-beach (FreightWaves, ILWU Local 26 strike authorisation)
• https://gcaptain.com/strike-threat-looms-at-eight-los-angeles-long-beach-port-terminals/ (gCaptain, affected terminals)
• https://www.worldports.org/250-watchmen-authorise-strike-at-busiest-us-container-port-complex/ (World Ports Organization, September volumes)
• https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry (Drewry, WCI on 22 October)
• https://www.drewry.co.uk/logistics-executive-briefing/logistics-executive-briefing-articles/world-container-index-methodology (Drewry, WCI methodology)