Evan Greenberg, CEO of Chubb, expects shipping traffic through the Strait of Hormuz to gradually increase, but risks remain. He said, “We are now talking about a war-zone-like environment. Currently, there is only one narrow channel available for passage, so the number of vessels entering and exiting is limited. The navy has been working to open a wider channel, and as the channel is opened, shipping volume will increase.”
June 22 – Evan Greenberg, CEO of Chubb, said on Sunday that with the United States continuing its efforts to secure the Strait of Hormuz, shipping traffic through the vital waterway is expected to gradually increase, but significant risks remain.
During a recent interview, he stressed that the situation remains highly unstable as US and Iranian officials negotiate on regional security and freedom of navigation.
Greenberg said: “The situation is changing every day, every hour.”
He further explained that “naval mines are the biggest uncertainty in the Strait,” and noted that despite efforts to expand safe transit routes, shipping remains constrained. “We are now talking about a war-zone-like environment. Currently, only one narrow shipping lane is available, so the number of vessels entering and exiting is limited. The navy has been working to open wider lanes, and as those lanes open, shipping volume will increase,” he added. Despite ongoing tensions, commercial traffic continues. U.S. military officials said that dozens of merchant vessels and millions of barrels of oil passed through the Strait of Hormuz on Saturday. In response to rising risks, Lloyd’s of London and Chubb recently launched a $400 million marine war risk insurance facility covering voyages through the Strait of Hormuz. Chubb also participates in a U.S.-backed reinsurance program designed to provide additional support for shipping and trade in the region.
