
Fisker Ocean review – Coming soon, in a future software update
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2 years agoon
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The Fisker Ocean has been out and about for a few months now, but most media drives have been relatively short test drives so far. But with the LA Auto Show in town, Fisker gave us an Ocean overnight to have a little unsupervised testing time with its new electric SUV.
In our testing, we came away impressed by a few things, but generally thinking that there is a lot more to be done before this vehicle can be ready for prime time.
The good stuff
The Fisker Ocean is a good-looking car. One expects this out of legendary car designer Henrik Fisker. But his other designs have been more striking than the Ocean, whereas the Ocean is more subtle.
It’s got a strong look, but it doesn’t stand out so much that you have to be the type of person who likes to stand out in order to drive it. It looks different enough from every egg-shaped SUV on the road today, but can still be driven by a normal person without making too much of a statement. It’s a good balance (though I don’t like the fake grille – it’s 2023, we’ve moved beyond that).

The interior is missing a few things (seat pockets, door water bottle holder, grab handles), but is largely spacious and comfortable, with plenty of head and leg room and nice seats.
A lot of thought has gone into sustainability in every material used in the vehicle, and Fisker gave us a long breakdown of its steps towards sustainability, which seem far more thought out than with most manufacturers. Every Ocean has 110lbs (50kg) of recycled materials in the vehicle, and Fisker touts the Ocean as having the lowest published lifecycle carbon of any electric SUV – though there are only a few published numbers to compare against.
Interior controls are a mix of physical and digital controls, with lots of your standard buttons on the dash and steering wheel and even some physical buttons under the center screen giving access to basic controls like climate and volume. These physical controls are welcome, meaning that you don’t need to use the touchscreen or dig into menus to do the most common things.
There are lots of “fun” features that will impress riders and offer some neat functional benefits.
The headline feature is “California Mode,” which opens every piece of glass on the car except the windshield – including both the rear glass and the tiny windows between the C and D pillar. It’s not quite the same experience as a convertible, but it does make for a super breezy drive, so bring your hats and hair ties. And it’s a big “wow” feature to see all those windows open up (which you can do from the key fob or a button inside).
It opens the glass sunroof too, but with the sunroof closed you’ll still have shade inside the vehicle, because the whole thing is covered in solar panels. Fisker says this will give you 1,500 miles of range per year – though we think this is probably an optimistic number. There’s no way to tell how much power you’re getting from it yet, but Fisker says it will add that in a future software update.
More practically, the ability to roll down the rear glass can help with loading small items in and out of the back without opening the whole trunk, and also makes driving with one window down less troublesome – lower the rear window and you can have air pass-through without the buffeting/”womping” experience that usually accompanies this. So a rear passenger can get fresh air without disrupting everyone else in the car as much.
There are a number of other features, most of which have an associated “mode” name (Fisker loves his “modes”). One is Hollywood Mode, which rotates the main screen from portrait to landscape aspect ratio and enables viewing of YouTube or other video content. Another is Limo Mode, which involves a small touchscreen in the middle rear armrest which can be folded down by the rear seat passengers, allowing control over HVAC and media. And a third are the “taco trays” for both driver and passenger, small trays to give you somewhere to put a meal, or perhaps a very small laptop, while you sit in the car and watch Hollywood Mode or wait for a charge or whatever else.
But beyond all that, there are a lot of issues, to the point where it feels like we can’t really do a full review of this car, since it’s still missing so many promised features, and so many that it really ought to have – promised or otherwise.
Owning an early model car
Throughout the history of car production, it has been known that there is a difference between early and late model cars. Early models are prized from collectors for their significance, but late models have their benefits because, well, everything works better.
Some will suggest that you should never buy an early model car because of these problems, but some like getting early models because it’s cool to have the new thing with the new tech. The market seems to lean towards the latter of these options, since most car models tend to do better in sales near the beginning of their life and taper off near the end as people wait for a refresh (except the Bolt…).
I was there for this stage of the Tesla Model S, the first mass-produced vehicle (not hand-built, like the Roadster) from the company. And I was there to see all the problems – and to also see how it disrupted the industry, taking sales away from the big luxury car makers, despite those problems, because it was new and cool.




And driving the Ocean, and showing it to people, even just for a day, made me feel the same way. I found myself making a lot of the same type of excuses as I’ve needed to make with other early model EVs – the software will be updated soon, they haven’t quite worked out the key fob, it doesn’t have a glove compartment or frunk but did you really use them all that often anyway?… and so on.
There are just a lot of foibles like this that are departures from the normal car experience. Some are intentional design choices to try to delete unnecessary features (like the glove box, because nobody uses driving gloves anymore, and there is a small slot under the seat for occasional use storage) or to add interesting new ones (the glove box is replaced by a “taco tray” which you can use to eat while you’re charging or something).
And some are cost-saving measures to get the car down to its relatively attractive $38,999 base price (though we tested the “Extreme” trim which starts at $61,499). This is $5k cheaper than the Model Y (at least for now, who knows what will happen with Tesla prices), but the Fisker doesn’t qualify for full tax credits (though you may be able to get around this through leasing).
Henrik Fisker even told us that in that quest for simplicity and cost-savings, he deleted one feature that’s on every car, but he won’t tell us which one it is because nobody has complained yet and if we write about it, then everyone will. Given what happened when Tesla fans distributed “inspection checklists” to people who have never considered bringing a pair of calipers to purchase a car before, we think he’s right about that.
But when we get down to it, there’s just a whole lot missing from the car. Let’s go through some bullet points of some (not all) of the things that I think are wrong, missing, or bad decisions:
- Electronic parking brake has a tendency to stay on when the car is put into drive, and needs to be manually released.
- No one-pedal driving – regen isn’t strong enough for that, even on high.
- Only momentary hill hold (a second or two), no persistent hill hold.
- “Limo mode,” the ability for rear passengers to adjust HVAC/volume, applies to the entire car, not just to the rear zone (there is no rear climate zone, and rear audio zone can only be activated from the front, deep in menus).
- The federally-required low-speed noise is too loud and not a pleasant sound.
- The key fob didn’t work great, and there’s no phone-as-key system (but there is a “phone left in vehicle” warning on the driver display if you try to get out of the car without your phone, which is quite cool).
- Many settings don’t get remembered between drives.
- The steering wheel is too thick and oddly shaped, and not the most comfortable to hold at 9-and-3 (which is how you should be holding it).
- The driver display changes colors and has a “breathing” ripple animation when you accelerate and decelerate, but the constant color changing was annoying and distracting when maintaining a constant-ish speed and the ripple is not smooth (in line with general low fps on the car’s displays).
- Level 2 charging speed was inexplicably slow on my home charger (pulling 5.6kW at 32A), and it would be nice to be able to set amperage in smaller increments than just 16A or 32A.
- On my way to return the car, I accidentally hit the “P” drive mode while driving, and the car told me it couldn’t shift because I was driving. But the next time I stopped the car about 30 seconds later, the car shifted into neutral for me right as I was trying to turn into an intersection, seemingly remembering what I had called for 30 seconds prior. I didn’t get a chance to replicate this.
- Air conditioning and heating both took a long time to spin up to full blast, at least in Earth mode. Other modes have quicker warm-up time, but since the car always starts out in Earth mode, you need to remember to change it.
- There’s a voice recognition button on the steering wheel, but it doesn’t work yet.
- I could get incoming calls and listen to podcasts from my phone over Bluetooth, but when I tried to use any Siri commands at all, my phone wouldn’t hear me or respond. This meant no sending texts, reading texts, outbound calls, changes to navigation, etc. while driving.
- The lane-keep assist and driver attention monitoring functions seemed hit-or-miss.
These are almost all fixable or changeable in software, and Fisker has already committed to working on many of them. But more concerningly:
- According to the car’s range display, it got nowhere near rated range. The car told me that I used 81.8kWh to go 135.3 miles, which works out to 533Wh/mi. Most electric cars use in the neighborhood of 300Wh/mi. Extrapolating to the 106 usable kWh of the battery, this works out to about half the car’s 360 mile rated range. My driving conditions were typical mixed California highway/street driving in reasonable temperatures, nothing too out of the ordinary (there was overnight rain, but the roads were mostly dry by the time I drove in the morning). I did not engage in particularly “spirited” driving outside of a few moments here and there, but was usually in “hyper” mode because “Earth” mode has so much throttle lag as to be almost undrivable. I typically achieve rated range fairly easily on EVs, and even come close to it on Teslas (which vastly overstate their range), though was probably driving a little faster than normal on the freeway due to the Ocean’s deceptively comfortable ride.

Fisker’s answer for most questions is that it will come in a future software update, though that can’t be the case for everything. But in today’s software-defined vehicles, which the Ocean is, it can solve most things.
The fix is coming… in a future software update
And most of the things that are wrong or missing with the Ocean are software-related, or can be fixed by software updates.
As for hardware, the car is put together well, so it doesn’t seem likely that it will be plagued with hardware problems. This is thanks to contract manufacturing from veteran Magna Steyr, which has been responsible for manufacturing many cars for many companies and has quite a positive reputation in the industry.
And further cost-cutting doesn’t seem like it will be super necessary, because Fisker says that it already turns a profit on every car out the door – which differentiates it from the other EV startups, less Tesla (which is not really a startup anymore anyway). This also means that it’s likely to be able to stick around to update software, as the risk of the company suffocating under the weight of expensive manufacturing investments is lower.
But the software still needs a lot of work. Not only are many promised features missing – no phone-as-key, no adaptive cruise control, a voice recognition button that does nothing, the car doesn’t remember your settings, etc – but the user interface is just too laggy.
The screen runs at low frames per second, there’s input latency for almost all touches but especially for certain things (e.g. switching to the climate control screen, anything in Hollywood Mode, any maps/nav interactions).
The UI is not as godawful as every legacy car infotainment system, but it’s not as good as a Tesla, a Rivian, or as CarPlay (including Porsche’s own CarPlay app). It’s laid out well enough, but it just needs to be much smoother – especially the nav system.
While it is still better than many legacy car infotainment systems are, it’s not better than other consumer electronics that people own. Even if a user doesn’t know about things like input latency or the visual difference between 15 and 60 fps, what they do know is that they have an iPad, and the car doesn’t work as good as their iPad, and that’s bad because they spent $600 on their iPad and $40,000 on their car, so why can’t their car work as good as their iPad?
I’m well acquainted with cars that are missing software features on release. When I did our original Model 3 review, there were some really glaring issues. The backup camera was unusably bad, for example. But the interface was still extremely smooth and the biggest problems were fixable and got fixed quickly. Today, that car, one of the first Model 3s ever released, is better than it was the day it was delivered.
A software-defined car with a competent team of software engineers behind it who are committed to regular software updates can do that, and that’s something that has been virtually unheard-of in the auto industry before now. And Fisker has committed to that.


So the Ocean will get better, and hopefully soon. One of Fisker’s software engineers told us that the internal software he has on his desk “looks promising,” and we’re sure that improvements will come, in a future software update.
We do have little doubt that Fisker’s update timeline will exceed that of legacy auto companies, but there are a lot of improvements needed. The software team must feel absolutely overwhelmed by the list of things that need to be implemented or fixed, and fast.
Driving characteristics need work, too
The software fixes needed aren’t just UI-based, but for drive software too. We already know about one that’s coming – Fisker says it will update the torque split on the car’s dual-motor AWD system.
Currently, the motors have the same power level front and rear, but when you accelerate, weight transfers onto the rear axle and the front wheels start spinning. This was so stark that I could reliably spin the front wheels pretty much whenever I wanted.
Even on a perfectly dry (yet cold, it was nighttime) road, I got wheelspin when activating “boost mode.” Boost mode is the name for Fisker’s maximum-acceleration launch control mode, and each car gets just 500 activations (Fisker says this limitation is to reduce drivetrain wear).
But when I activated it, it didn’t feel violent to the point of needing drivetrain protection – I was unable to achieve Fisker’s stated 3.7 second 0-60 time, rather getting a time of about 4.9 seconds. This is because the front wheels really weren’t participating in acceleration until I reached around 40mph, since they were spinning (and/or recovering from a spin, via traction control) almost the entire time.
While 4.9 is plenty fast and the car still feels plenty powerful in normal use, it’s nothing to write home about or limit launch control uses over.
Fisker says that this will be fixed with an update to the car’s torque split, perhaps moving to 45/55 front-rear torque to help with stability. This fix will come in a future software update.
The car has three driving modes (Fisker and his “modes”) – Earth (eco), Fun, and Hyper. The car defaults to Earth mode each time you get in, because the car’s default mode is how EPA testing occurs, so Fisker wanted the longest-range mode to act as the default (the car will be able to remember drive modes in, say it with me now, a future software update).
But Earth mode, honestly, was nigh-undrivable. Fisker says the mode reduces max torque, but what it does most noticeably is add a delay to the pedal response, with that delay lessening (but not going completely away) in Fun and Hyper mode.
This delay can lead to a situation where when you call for acceleration and don’t get it (due to a longer delay in default Earth mode), you push the pedal a little further and then all of a sudden the car surges with more acceleration than you had expected. And this is going to happen if people get used to driving in Hyper mode (which was the most usable mode, since it has the least throttle delay) and the car switches back to Earth mode every drive.
The delay also applies to activating regen, which does not immediately kick in when letting off the accelerator pedal.
I was similarly disappointed with the car’s blended brakes, which I’ve never really liked on any car (VW group EVs all do this). A blended brake system means that the brake pedal first applies regenerative braking on a light press, and then friction brakes on a deeper press. It makes braking feel inconsistent, and feels like there’s some delay on the brake pedal as well.
And finally, the car’s handling characteristics didn’t inspire the most confidence either. The steering felt numb, and wasn’t adjustable unlike some other EVs these days. And despite the battery being placed low in the car like in most EVs, the tall Ocean felt wobbly even in slight directional corrections.
Altogether, this just led to a driving experience that felt unresponsive. It’s a tall SUV, so it’s not going to be a super tight drive experience in the first place, but it still didn’t feel good enough for an SUV either.
Conclusions…?
For all of these reasons, it’s hard to give any conclusion on the Fisker Ocean in its current form. There are just so many features that aren’t out yet or that could be improved in software that any review done today will be wholly different if done a year from now.
As mentioned earlier, this is the benefit of a software-defined vehicle – it can be improved, and from a small company that is just starting out, individual voices can have an influence on where the car’s software goes from here. If just a few users call for a certain feature on forums or at Fisker events, the company might listen and offer a new mode (Fisker and his modes) to make that segment of customers happy.
So the calculus of buying this car is so different from the calculus of buying most others. Do you think that Fisker will be able to bring enough improvements quick enough for you? Does the idea of being involved in shaping the direction of a company seem exciting to you? Or does that all sound like more trouble than it’s worth?
In short, if you wish you could have been there for the ownership experience of a Model S in 2012, then this is the car for you.
At the very least, I would say that the Fisker Ocean in its current form is a car that definitely demands a test drive before purchase. Try it out, see if the driving dynamics are acceptable to you, see if the software has been improved enough for your tastes, see if its comfort and space and good looks and reasonable price are enough to overlook the missing parts for the time being.
Or, wait. For… a future software update.
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Environment
Home solar/battery 30% incentive is over 180 days after Trump signs it – latest Senate bill
Published
4 hours agoon
June 17, 2025By
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In the latest Senate version of the GOP’s budget and tax bill, better known as Trump’s Big Beautiful Bill, the 30% tax credit for home solar and batteries is going to be over 180 days from the time the President signs it.
Other tax credits for utility-scale solar and wind projects are going to be completely phased out by 2028.
As expected, the Republican Party has been trying to remove incentives for renewable energy to clean its grid and achieve much-needed productivity expansions.
The main effort is through the new budget and tax bill, known as Trump’s ‘Big Beautiful Bill’, which was passed by the House last month. However, the bill is expected to evolve as it progresses through the Senate.
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Under the version passed by Congress, the ITC (Section 25D), which offers a 30% tax credit for home solar and energy storage systems, was going to be completely phased out by the end of 2025.
The Senate has now released the latest draft of the bill, which includes more details about how it plans to eliminate renewable energy incentives.
According to the latest language, the home solar and battery incentive would end 180 days after it is enacted.
Here’s the latest language:
(a) IN GENERAL.—Section 25D is amended by striking subsection (h) and inserting the following new subsection:
‘‘(h) TERMINATION.—
‘(1) IN GENERAL.—The credit allowed under this section shall not apply with respect to any expenditures made after the date described in paragraph (2).
‘‘(2) APPLICABLE DATE.—The date described in this paragraph is the date which is 180 days after the date of enactment of this paragraph.’’.
It’s not exactly clear when Trump could sign the bill. It is still contested by some Republicans, who hold the majority in the Senate, but killing the
The rumor is that they are trying to get it on his desk by July 4, which would mean the end of the tax credit by December 31st and no real change compared to the House bill at this level unless there are further delays on passing the bill in the Senate, which is not out of question.
This is creating a new level of urgency for home solar and battery installations to get systems deployed and activated by the end of the year.
The only good news with the current Senate version of the bill compared to the House’s is for larger-scale utility solar and battery projects, which generally fall under Section 48E of the Code (ITC).
There’s now a planned phase out with 60% of the incentive in 2026 and 20% in 2027 rather than ending by 2025:
- Solar and wind facilities would be eligible for the full ITC or PTC, as applicable, if construction begins in 2025.
- If construction begins in 2026, such facilities would be eligible for 60 percent of the otherwise available ITC or PTC.
- If construction begins in 2027, such facilities would be eligible for 20 percent of the otherwise available ITC or PTC.
- Thereafter, such facilities would not be eligible for the ITC or PTC.
Those incentives are instead going to be directed toward hydropower, nuclear and geothermal energy through 2036.
Electrek’s Take
Some good, some bad here. Obviously, this is a win for big corporations and the fossil fuel industry more than anything.
They don’t want decentralized energy production and storage, which is what the tax credit for residential solar power and energy storage systems is intended to incentivize.
The good news is that if you are a homeowner and you still don’t have solar, there might be time to still lock in an installation by the end of the year – though it is starting to be limited due to high demand.
EnergySage can help you go solar in a few clicks without getting any sales calls until you are ready to move forward. It’s a free service that will enable you to get quotes and compare them without any hassle. They work with a great number of solar installers and help you get the best price and best system for your home. Receive and compare solar quotes quickly on their website.
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Environment
Tesla gears up to start selling Tesla Semi electric truck in Europe
Published
6 hours agoon
June 17, 2025By
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Tesla is gearing up to start selling its upcoming Tesla Semi electric truck in Europe with a new hire to develop the market.
Tesla Semi is finally about to go into volume production in the US after being unveiled almost a decade ago.
The vehicle was unveiled in 2017 and was initially scheduled to enter production in 2019; however, the automaker delayed the program on several occasions.
Tesla unveiled a “production version” in 2022, but it was only produced in small batches. The Class 8 electric truck remains a rare sight in the US, with only a few dozen units in the hands of a handful of customers and a few more in Tesla’s internal fleet.
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In January 2023, Tesla announced an expansion of Gigafactory Nevada to build the Tesla Semi in volume.
However, that plan was also changed and delayed. Tesla ultimately built a separate factory adjacent to Gigafactory Nevada, and production was delayed until 2025.
Earlier this year, Tesla completed the building and started working on the production lines. The automaker said that Tesla Semi production was expected to begin in late 2025 and ramp up to a capacity of 50,000 trucks per year.
Now, we learn that Tesla is starting to build an organization to sell the Tesla Semi in Europe.
Electrek found that Tesla hired a new leader to head business development for Tesla Semi in Europe.
Usuf Schermo announced on his LinkedIn last week that he joined Tesla as “Head of Business Development EMEA for Tesla Semi.”
Schermo, who holds a master in economic engineering, energy and ressources management from TU Berlin, has some experience with commercial electric vehicles.
He was the head of sales in Germany for Volta Trucks from 2022 to 2024. The company made the Volta One, a 16-tonne electric truck aimed at city deliveries.
Volta went bankrupted in 2023, but it got back in business with a restructuring in 2024, which didn’t last long as they were insolvent as of last month.
For the last year, Schermo has been leading sales for EVUM aCar, a German startup building a small commercial vehicle.
Now, he will develop the market for Tesla’s class 8 electric truck.
The European electric commercial truck market is much developed in the US with already some significant competition from Volvo with the Volvo FH Electric, Mercedes-Benz with the eActros 600, MAN with the eTGX, and several others.

The market is still young, but Volvo is already emerging as a leader with an estimated more than 3,000 electric trucks in operations in Europe.
With production only starting in the US toward the end of the year, Tesla is not likely to have an homologated version of the Tesla Semi in Europe until later in 2026.
Tesla has already announced plans to build the Tesla Semi in Europe at Gigafactory Berlin.
The automaker currently only produces the Model Y at the German factory and its sales are crashing across Europe.
Electrek’s Take
I keep saying to Tesla fans that hate me: I track both Tesla hires and departures. I try to report on both, but the former are much more scarce than the latter these days.
This is one of the few significant hires of the last years at Tesla and say “significant” because it shows Tesla is preparing to sell the Tesla Semi in Europe because this is clearly not an executive level role.
Over the last year and since the great purge of talent in April 2024, Tesla has almost been exclusive promoting from within at higher director and VP levels rather than hire from outside.
As for the Tesla Semi in Europe, it could work. Like I said, there’s already a lot of competition, but Tesla Semi is expected to have a longer range than everything else, which should attract buyers.
However, as we recently reported, it is expected to be much more expensive than what Tesla previously announced.
It could particularly useful for Gigafactory Berlin, which is at a real risk right now with Tesla’s sales crashing in Europe. Producing a new vehicle program there, and a commercial one that rely less on consumer perception, could help increase factory utilization.
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Environment
Shipping groups are starting to shy away from the Strait of Hormuz as Israel-Iran conflict rages on
Published
8 hours agoon
June 17, 2025By
admin
An Islamic Revolutionary Guard Corps speed boat sailing along the Persian Gulf during the IRGC marine parade to commemorate Persian Gulf National Day, near the Bushehr nuclear power plant in the seaport city of Bushehr, in the south of Iran, on April 29, 2024.
Nurphoto | Nurphoto | Getty Images
Some shipowners are opting to steer clear of the strategically important Strait of Hormuz, according to the world’s largest shipping association, reflecting a growing sense of industry unease as the Israel-Iran conflict rages on.
Israel’s surprise attack on Iran’s military and nuclear infrastructure on Friday has been followed by four days of escalating warfare between the regional foes.
That has prompted shipowners to exercise an extra degree of caution in both the Red Sea and the Strait of Hormuz, a critical gateway to the world’s oil industry — and a vital entry point for container ships calling at Dubai’s massive Jebel Ali Port.
Jakob Larsen, head of security at Bimco, which represents global shipowners, said the Israel-Iran conflict seems to be escalating, causing concerns in the shipowner community and prompting a “modest drop” in the number of ships sailing through the area.
Bimco, which typically doesn’t encourage vessels to stay away from certain areas, said the situation has introduced an element of uncertainty.
“Circumstances and risk tolerance vary widely across shipowners. It appears that most shipowners currently choose to proceed, while some seem to stay away,” Larsen told CNBC by email.
“During periods of heightened security threats, freight rates and crew wages often rise, creating an economic incentive for some to take the risk of passing through conflict zones. While these dynamics may seem rudimentary, they are the very mechanisms that have sustained global trade through conflicts and wars for centuries,” he added.
The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world’s most important oil chokepoints.
In 2023, oil flows through the waterway averaged 20.9 million barrels per day, according to the U.S. Energy Information Administration, accounting for about 20% of global petroleum liquids consumption.
The inability of oil to traverse through the Strait of Hormuz, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays.
Alongside oil, the Strait of Hormuz is also key for global container trade. That’s because ports in this region (Jebel Ali and Khor Fakkan) are transshipment hubs, which means they serve as intermediary points in global shipping networks.
The majority of cargo volumes from those ports are destined for Dubai, which has become a hub for the movement of freight with feeder services in the Persian Gulf, South Asia and East Africa.

Peter Tirschwell, vice president for maritime and trade at S&P Global Market Intelligence, said there have been indications that shipping groups are starting to “shy away” from navigating the Strait of Hormuz in recent days, without naming any specific firms.
“You could see the impact that the Houthi rebels had on shipping through the Red Sea. Even though there [are] very few recent attacks on shipping in that region, nevertheless the threat has sent the vast majority of container trade moving around the south of Africa. That has been happening for the past year,” Tirschwell told CNBC’s “Squawk Box Asia” on Monday.
“The ocean carriers have no plans to go back in mass into the Red Sea and so, the very threat of military activity around a narrow important routing like the Strait of Hormuz is going to be enough to significantly disrupt shipping,” he added.
Israel-Iran conflict lifts freight rates
Freight rates jumped after the Israeli attacks on Iran last week. Indeed, data published Monday from analytics firm Kpler showed Mideast Gulf tanker freight rates to China surged 24% on Friday to $1.67 per barrel.
The upswing in VLCC (very large crude carrier) freight rates reflected the largest daily move year-to-date, albeit from a relative lull in June, and reaffirmed the level of perceived risk in the area.
Analysts at Kpler said more increases in freight rates are likely as the situation remains highly unstable, although maritime war risk premium remains unchanged for now.
Missiles launched from Iran are intercepted as seen from Tel Aviv, Israel, June 16, 2025.
Ronen Zvulun | Reuters
David Smith, head of hull and marine liabilities at insurance broker McGill and Partners, said shipping insurance rates, at least for the time being, “remain stable with no noticeable increases since the latest hostilities between Israel and Iran.”
But that “could change dramatically,” depending on whether there is escalation in the area, he added.
“With War quotes only valid for 48 hours prior to entry into the excluded ‘Breach’ area, Underwriters do have the ability to rapidly increase premiums in line with the perceived risk,” Smith told CNBC by email.
The Hapag-Lloyd AG Leverkusen Express sails out of the Yangshan Deepwater Port, operated by Shanghai International Port Group, on Aug. 7, 2019.
Bloomberg | Bloomberg | Getty Images
A spokesperson for German-based container shipping liner Hapag-Lloyd said the threat level for the Strait of Hormuz remains “significant,” albeit without an immediate risk to the maritime sector.
Hapag-Lloyd said it does not foresee any bigger issues in crossing the waterway for the moment, while acknowledging that the situation could change in a “very short” period of time.
The company added that it has no immediate plans to traverse the Red Sea, however, noting it hasn’t done so since the end of December 2023.
— CNBC’s Lori Ann LaRocco contributed to this report.
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