Top Oil Tanker Operator CEO on Risk of Mideast Conflict

CC-Transcript
00:00You've probably already had to deal with a lot of disruptions and where things go safely, where things go cheaply or economically, I should say, because of the disruptions from previous wars, of wars that are still going on with Ukraine and Russia, the conflict in Gaza, not to mention just the overall disruption from what's been going on with trade and tariffs. How did what happened over the last few days between Israel and Iran change that, if at all? Well, so far it hasn't really changed much, but of course, it heightens the risk. You know, we have a21 tanker sailing in the ocean and some at any point in time, some of them will be in the Middle East. We've got more than 2000 seafarers on these vessels. So this is obviously of grave concern to us. But so far and good, it's shipping seem to be untouched. But this is also what one has to remember, one of the most watched areas of the world right now. Yeah. So so we're quite confident that we're sailing safe as it is right now. But this can develop as things develop. How quickly can you pivot either rerouting ships or rerouting pick ups and drop offs and things like that? Is there enough flexibility to do that? Yeah, there is. And, you know, we have kind of within the charter partly, which is the contractual obligation to the owner of the cargo. There's a lot of points where you can kind of alter the course or kind of basically refuse to go in. I'm wondering if you have a geopolitical analyst or expert on stuff. How do you game out different scenarios that could happen and strategize your response or how you want to be positioned? Well, this is where shipping kind of comes together. All our ships are managed by different managers. They will collectively sit down with security analysts, professional companies that follow this. These companies are in direct contact with us, maybe UK Navy and so forth. So so we actually have like your daily call in the morning where we kind of assess the current situation. And then the Navy is will share any observations and information they have and so forth. So it feels kind of comfortable, but you're kind of constantly monitoring and being very vigilant about things. What are your customers, the big oil companies, telling you about the situation? What kind of on the ground dispatches have they given you? Well, actually, not that much, to be quite honest. But, you know, they're a little bit kind of question marks right now because, you know, I think one of the effects of the disruption that we're currently looking at is that, say, if you're an Asian refiner, wouldn't you rather go for the West African barrel, the US barrel, the Brazilian barrel, rather than the Middle Eastern barrel? So this can kind of alter the trading patterns some somewhat. But, you know, shorters and ourselves are basically in the same situation. You know, safety is kind of the first emphasis in the past. So and you've been doing this for a long time in the past, usually to a certain extent. Energy production, energy shipping has sort of technically kind of been off limits, not necessarily by any sort of formal agreement, but it's always sort of been like, okay, these wars might be taking place. But the idea that this trade still has to flow to some extent. I know there's always sort of rogue groups that might get involved, but generally the big state actors have usually found a way to keep things flowing. Yeah, absolutely. And this is what makes kind of the Red Sea situation kind of unprecedented when that started to erupt with where the halt is attacking, well, almost random vessels. So but we've always been exposed to piracy. We've also been exposed to security risks. But but you're absolutely right. Normally, kind of commodities in particular, oil will be allowed to flow. It's you know, it's kind of you know, both Iranians have the interests of oil to flow. And so this, of course, will deal the parties to the conflict when there are disruptions like this and prices go up. I would assume, at least for your business, that ends up being accretive. Right. Is there some sort of knock down effect, though, in terms of the risk that's baked into that that you have to shoulder, that your company has to shoulder its you know, basically what you're referring to is what we call risk insurance. So so that's not always totally covered by the sort of party and depending on kind of how quickly things evolve. But in general, kind of, you know, as I mentioned, we have the same interests as the owner of the cargo. And and normally, you know, we kind of all costs will all be covered in such a situation. Some of you've told our reporters is that tanker owners take their cue from insurers in determining the risks associated with the trade. But you also point out that it's too soon after the attacks for that calculation to have happened. So at what point does that begin happening? It's basically a price discovery process, and of course, it involves freight as well. We're in the market to to make money. So so so kind of both on Friday and, you know, today, the market, you know, it's been kind of well, there's an expression Mexican standoff between shuckers and owners to figure out what is the right price for accepting to commit to lift a Middle-Eastern cargo right now. How much do both sides rely on what's happened in the past to kind of set the template for what's going to happen in the future, even though this is all very unpredictable? Yeah. Now there's several playbooks where kind of almost infinity is the it's the limits to to to kind of how far this can run. But but I think kind of the background music, if you can call it that, you know what's going on. We just saw today immediately in the derivatives markets around shipping kind of start to sell off the minute the Iranians signaled that they wanted to to to have discussions with Israel. But then, you know, as we see Israel looking to continue their their operation suddenly tightens up against is a very fluid and efficient market that the process this is this is more of a broader holistic question just about kind of the state of the world and the idea that for years at least coming out of the post-World War two era, this idea of a of a more global economy and which led to a certain degree of cooperation, there are obviously still tons of conflicts that had to be fought out and resolved over that period. But there was a sense of cohesion that cohesion seems to be, at least in perception, missing right now. The. The world's largest economies barely speak to each other. You have a lot of trading partners that are now looking for new trading partners because they feel like the old ones are unreliable. Does that pose a risk to you or do you sort of this you and front line, do you still thrive no matter what the situation is? As long as something is being sold to somebody in another country? You're going to still be a player in that. Well, ironically, kind of this global polarization as see referring to actually creates ineffective trading lanes. So it's not particularly good for the environment because our ships do emit. But for us to travel longer distances is actually not the worse thing. So so but but you know, ever since kind of China joined the World Trade Organization back in 2000, you know, we've actually had an extremely effective global trading system around most commodities. And this is now kind of gradually dismantling. So so so which is, I think, more aware to global growth rather than shipping specifically. As we wrap up this conversation, what's the thing that keeps you up at night? What do you worry about the most right now is basically having, you know, a rocket into the side of a ship. So it's, you know, we're carrying kind of hazardous cargo, you know, can be explosive. And we have the seafarers. So so so this is kind of what it doesn't really keep me up at night, but it's the coal I don't want.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

CNN

19 minutes ago

• CNN

Eight die in hot air balloon accident in Brazil

Eight die in hot air balloon accident in Brazil A video posted to social media showed a hot air balloon catching fire in the sky before plummeting to the ground in Brazil. Eight of the 21 people on board died in the incident, according to the local governor. 00:23 - Source: CNN Video shows missiles from Iran streaking skies of Israel CNN's Anderson Cooper reports live from Tel Aviv, as Israel's military says it identified missiles launched from Iran and that defense systems are working to intercept them. The military called on the public to "enter a protected space" and stay there until further notice. Israel has also begun a new wave of attacks in Iran, its military said Saturday. 00:31 - Source: CNN Why Fareed Zakaria thinks Trump has 'FOMO' foreign policy CNN's Fareed Zakaria analyzes what may be motivating President Trump's foreign policy: a fear of missing out. 00:44 - Source: CNN Anderson Cooper reports from a bomb shelter in Israel CNN's Anderson Cooper reports from a bomb shelter in the basement of a hotel in Tel Aviv as Iran fires another round of missiles at Israel. 01:13 - Source: CNN Aftermath of Iranian strike on Haifa CNN's Nic Robertson shows the aftermath of an Iranian strike on Haifa, Israel, less than an hour after it made impact. The strike wounded at least 17 people according to Israeli national emergency service MDA. 00:48 - Source: CNN Iran's foreign minister responds to Trump's call for negotiations After President Trump opened a two-week negotiating window before he decides whether to strike Iran, Iranian Foreign Minister Abbas Araghchi says the country is not seeking negotiations with the United States. 00:16 - Source: CNN Iranian missile strikes major Israeli medical center CNN's International Diplomatic Editor, Nic Robertson, reports from Beer Sheva, Israel, where a hospital was struck during an Iranian attack. Iran said it was targeting an Israeli intelligence and command center 'near a hospital.' There have been no reported deaths from the strike. 01:04 - Source: CNN Israel's defense minister: Khamenei cannot 'continue to exist' Israel's Defense Minister Israel Katz said Iran's Supreme Leader Ayatollah Ali Khamenei cannot be allowed to 'continue to exist,' after an Israeli hospital was struck by an Iranian missile on Thursday. 00:13 - Source: CNN CNN correspondent reports on the ground in Tehran Air defense systems had been activated over Tehran overnight, according to a Telegram post from Iran's Islamic Revolutionary Guard Corps. CNN's Fred Pleitgen reports on the scene. 01:41 - Source: CNN CNN on the ground in Tehran CNN's Fred Pleitgen is in Iran's capital city of Tehran and is the first western journalist to enter the country since its conflict with Israel started. Hear his first impressions and what he's witnessed as he journeyed across Iran. 01:28 - Source: CNN Trump says decision on Iran will come down to the last second CNN's Kaitlan Collins asks President Trump if he has made a final decision on whether to intervene in the Israel-Iran conflict. 01:12 - Source: CNN This is how the US could get involved in the Israel-Iran conflict CNN's Nick Paton Walsh reports on how the US could get involved in the conflict between Israel and Iran while the countries continue trading strikes for a sixth day, with civilians in flashpoint areas facing waves of attacks. 02:14 - Source: CNN Trump open to assisting Israel in conflict with Iran CNN's Kaitlan Collins gives the latest reporting on the White House debating whether to intervene in the Israel-Iran conflict. 00:58 - Source: CNN Woman gives birth to triplets in underground Israeli hospital A woman gave birth to triplets Monday in Israel's Rambam hospital, one of several in the country that have moved some operations underground as Iranian strikes hit the city of Haifa this week, according to Reuters. 00:44 - Source: CNN What Iranian residents are texting to CNN as strikes hit As Israeli strikes zeroed in on Iran's capital city of Tehran, CNN's Clarissa Ward reports from Tel Aviv some of the messages she's received from residents in Iran offering a glimpse into the daily anxieties of living in a country faced with an ever-escalating conflict in the sky. 01:33 - Source: CNN Trump disputes intel chief Tulsi Gabbard on Iran President Donald Trump disputed his own director of national intelligence, Tulsi Gabbard, on how developed Iran's nuclear capabilities are and said Iran was on the verge of obtaining a nuclear weapon when Israel struck in recent days. 00:26 - Source: CNN Trump tells CNN reporter why he left G7 As President Donald Trump returns to the United States after leaving the G7 summit early, he took questions from journalists aboard Air Force One. Watch his answer to CNN's Chief White House correspondent Kaitlan Collins' question on why he left early. 00:44 - Source: CNN Trump slams Macron's comment on why he had to leave G7 summit early US President Donald Trump called out French President Emmanuel Macron over his counterpart's suggestion that he left the G7 summit to work on a ceasefire between Israel and Iran. "He has no idea why I am now on my way to Washington, but it certainly has nothing to do with a Cease Fire," Trump wrote on Truth Social. 00:35 - Source: CNN Kaitlan Collins explains why Trump left G7 summit early President Donald Trump is heading back early to Washington from the G7 summit in Canada, as the conflict between Israel and Iran enters its fifth day. CNN's Kaitlan Collins reports on the escalating attacks between the two sides and Trump's warning to civilians in Tehran. 00:55 - Source: CNN Ex-Israeli Defense Minister's message to Trump Benny Gantz, Chairman of Israel's National Unity Party, and the former Minister of Defense speaks to CNN's Anderson Cooper following Israel's attack on Iran. 01:08 - Source: CNN Video shows Pakistani students returning home from Tehran Hundreds of Pakistani students who left their studies in Tehran amid daily strikes on the city by Israel, have crossed back into Pakistan, a local official told CNN. 00:28 - Source: CNN CNN team sees strike damage in Tel Aviv Residents in Tel Aviv, Israel, are reeling after another round of Iranian strikes on the city overnight. CNN's International Diplomatic Editor Nic Robertson visits a street in the center of the city where buildings were severely damaged and windows blown out by Iranian missiles. 01:28 - Source: CNN What we know about Iran's key nuclear site It's key to Iran's nuclear program: the Fordow plant - in a mountain lair where hundreds of centrifuges, hidden possibly 90 meters underground, enrich uranium to 60%. CNN's Nick Paton Walsh explains what we know about the key site in Israel's crosshairs. 01:00 - Source: CNN CNN asks Israeli official about plans to eliminate Iran's nuclear program Former Israeli Defense Minister Yoav Gallant tells CNN's Bianna Golodryga that it's up to the "free world" to eliminate Iran's nuclear program. 01:14 - Source: CNN Trump slams G7 for kicking out Russia President Donald Trump kicked off his visit to the G7 summit in Canada by criticizing nations for kicking out Russia eleven years ago. 00:36 - Source: CNN Shipping industry navigates Trump's trade war CNN's Kristie Lu Stout gets exclusive access on board a US-bound container ship in Hong Kong's port, the frontlines of China's 'export rush' chaos as the clock ticks down on a 90-day pause on US tariffs imposed on Chinese goods. 01:11 - Source: CNN Iranian state television says it was attacked by Israel The studio complex of Iran's state news channel IRINN was struck by Israel on Monday, according to the country's state news agency. A loud explosion was heard while an anchor was presenting live on air, according to a live feed. 00:19 - Source: CNN

Associated Press

20 minutes ago

• Associated Press

Democrats are at odds over the Israel-Iran war as Trump considers intervening

After nearly two years of stark divisions over the war in Gaza and support for Israel, Democrats are now finding themselves at odds over U.S. policy toward Iran as progressives demand unified opposition to President Donald Trump's consideration of a strike against Tehran's nuclear program while party leaders tread more cautiously. U.S. leaders of all stripes have found common ground for two decades on the position that Iran cannot be allowed to obtain a nuclear weapon. The longtime U.S. foe has supported groups that have killed Americans across the Mideast and threatens to destroy Israel. But Trump's public flirtation with joining Israel's offensive against Iran may become the Democratic Party's latest schism, just as it is sharply dividing Trump's isolationist 'Make America Great Again' base from more hawkish conservatives. While progressives have staked out clear opposition to Trump's potential actions, the party leadership is playing the safer ground of demanding a role for Congress before Trump could use force against Iran. Many prominent Democrats with 2028 presidential aspirations are staying silent, so far, on the Israel-Iran war. 'They are sort of hedging their bets,' said Joel Rubin, a former deputy assistant secretary of state who served under Democratic President Barack Obama and is now a strategist on foreign policy. 'The beasts of the Democratic Party's constituencies right now are so hostile to Israel's war in Gaza that it's really difficult to come out looking like one would corroborate an unauthorized war that supports Israel without blowback.' Progressive Democrats use Trump's ideas and words Rep. Ro Khanna, D-Calif., has called Trump's consideration of an attack 'a defining moment for our party' and has introduced legislation with Rep. Thomas Massie, R-Ky., that calls on the Republican president to 'terminate' the use of U.S. armed forces against Iran unless 'explicitly authorized' by a declaration of war from Congress. Khanna used Trump's own campaign arguments of putting American interests first when the congressman spoke to Theo Von, a comedian who has been supportive of the president and is popular in the 'manosphere.' 'That's going to cost this country a lot of money that should be being spent here at home,' said Khanna, who is said to be among the many Democrats eyeing the party's 2028 primary. Vermont Sen. Bernie Sanders, an independent who twice sought the Democratic presidential nomination, pointed to Trump's stated goal during his inaugural speech of being known as 'a peacemaker and a unifier.' 'Very fine words. Trump should remember them today. Supporting Netanyahu's war against Iran would be a catastrophic mistake,' Sanders said about Israeli Prime Minister Benjamin Netanyahu. Sanders has reintroduced legislation prohibiting the use of federal money for force against Iran, insisted that U.S. military intervention would be unwise and illegal and accused Israel of striking unprovoked. Senate Democratic leader Chuck Schumer of New York signed on to a similar bill from Sanders in 2020, but he is so far holding off this time. Some believe the party should stake out a clear anti-war stance as Trump weighs whether to launch a military offensive that is seemingly counter to the anti-interventionism he promised during his 2024 campaign. 'The leaders of the Democratic Party need to step up and loudly oppose war with Iran and demand a vote in Congress,' said Tommy Vietor, a former Obama aide, on X. Mainstream Democrats are cautious, while critical The staunch support from the Democratic administration of President Joe Biden and Vice President Kamala Harris for Israel's war against Hamas loomed over the party's White House ticket in 2024, even with the criticism of Israel's handling of the humanitarian crisis in Gaza. Trump exploited the divisions to make inroads with Arab American voters and Orthodox Jews on his way back to the White House. Today, the Israel-Iran war is the latest test for a party struggling to repair its coalition before next year's midterm elections and the quick-to-follow kickoff to the 2028 presidential race. Bridging the divide between an activist base that is skeptical of foreign interventions and already critical of U.S. support for Israel and more traditional Democrats and independents who make up a sizable, if not always vocal, voting bloc. In a statement after Israel's first strikes, Schumer said Israel has a right to defend itself and 'the United States' commitment to Israel's security and defense must be ironclad as they prepare for Iran's response.' Sen. Jacky Rosen, D-Nev., was also cautious in responding to the Israeli action and said 'the U.S. must continue to stand with Israel, as it has for decades, at this dangerous moment.' 'It really seems like the Trump and Iran war track is kind of going along like a Formula 1 racetrack, and then the Democrats are in some sort of tricycle or something trying to keep up,' said Ryan Costello, a policy director for the Washington-based National Iranian American Council, which advocates for diplomatic engagement between U.S. and Iran. Other Democrats have condemned Israel's strikes and accused Netanyahu of sabotaging nuclear talks with Iran. They are reminding the public that Trump withdrew in 2018 from a nuclear agreement that limited Tehran's enrichment of uranium in exchange for the lifting of economic sanctions negotiated during the Obama administration. 'Trump created the problem,' said Sen. Chris Murphy, D-Conn., on X. 'The single reason Iran was so close to obtaining a nuclear weapon is that Trump destroyed the diplomatic agreement that put major, verifiable constraints on their nuclear program.' The progressives' pushback A Pearson Institute/Associated Press-NORC Center for Public Affairs Research poll from September 2024 found that about half of Democrats said the U.S. was being 'too supportive' of Israel and about 4 in 10 said their level support was 'about right.' Democrats were more likely than independents and Republicans to say the Israeli government had 'a lot' of responsibility for the continuation of the war between Israel and Hamas. About 6 in 10 Democrats and half of Republicans felt Iran was an adversary with whom the U.S. was in conflict. Democratic Rep. Yassamin Ansari, an Iranian American from Arizona, said Iranians are unwitting victims in the conflict because there aren't shelters or infrastructure to protect civilians from targeted missiles as there are in Israel. 'The Iranian people are not the regime, and they should not be punished for its actions,' Ansari posted on X, while criticizing Trump for fomenting fear among the Iranian population. 'The Iranian people deserve freedom from the barbaric regime, and Israelis deserve security.' ___ Associated Press writers Mary Clare Jalonick and Linley Sanders in Washington contributed to this report

Yahoo

24 minutes ago

• Yahoo

Houthis threaten U.S. ships if Washington joins strikes on Iran

(Reuters) -Yemen's Houthis will target U.S. ships in the Red Sea if Washington becomes involved in Israeli attacks on Iran, the group's military spokesperson said on Saturday. In May, the U.S. and the Houthis agreed to a ceasefire under which neither side would target the other.