Shipping threats around Arabian Peninsula rising, largest global shipowners organization warns
Refrigerated containers of Maersk shipping lines are stacked at the container terminal of Bremerhaven port on April 22, 2025 in Bremerhaven, Germany.
Focke Strangmann | Getty Images News | Getty Images
The world’s largest direct-membership organization for shipowners, charterers, shipbrokers, and agents is warning that while it is still unclear how Iran will respond to Saturday’s U.S. attack on Iran’s nuclear facilities, the threat to commercial shipping in the waters around the Arabian Peninsula has risen.
“The Houthi threat against shipping in the Red Sea and Gulf of Aden has also gone up,” said Jakob Larsen, head of security at Bimco, which represents global shipowners. “The Houthis now threaten merchant ships with affiliation to Israel or the U.S., but attacks against merchant ships with other affiliations cannot be ruled out.”
Larsen said it is expected that U.S. warships and merchant ships affiliated with Israel or the U.S. would be the preferred targets for the Iranians.
In an email to CNBC, a Hapag Lloyd spokesperson tells CNBC, “We currently are still crossing the Street of Hormuz. Alert level is high, though, and things might change by the hour.”
Integrated logistics provider Maersk announced Friday it is temporarily suspending port calls to Israel’s largest container port, Haifa. The $4.2 billion cargo facility at Haifa, owned by Adani Group, has been a target of Iranian missiles but has not suffered any damage. Last week, Jugeshinder “Robbie” Singh, CFO of the Adani, debunked misinformation posted that the port was on fire from a strike on Iranian social media.
Bimco’s Larsen warned Iran could attempt a wider disruption of commercial shipping in the Strait of Hormuz through attacks on merchant ships. Antiship missiles or drones of both airborne and surface types could be used in these attacks, he said.
“The laying of sea mines would constitute another dangerous development, but Iran’s intent to do so is questionable due to the risk to Iran-affiliated commercial ships and the risk of environmental disaster in case a ship is damaged,” said Larsen.
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. 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. 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.
“Given the Iranian threat to U.S. military bases in the region, availability of warships for protection of commercial shipping is probably limited, especially for commercial ships with no affiliation to the U.S. or Israel,” Larsen said.
The Strait of Hormuz handles less than 4% of global container trade but the ports of Jebel Ali and Khor Fakkan are critical intermediary points for global shipping networks in the region.
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.
The conflict in the region has also sparked ocean freight rates to surge from Shanghai to Jebel Ali, the Arabian Gulf’s largest port.
Freight intelligence firm Xeneta said average spot rates have increased 55% month-over-month, prior to the conflict escalation between Israel and Iran. Rates are now $2,761 per forty-foot equivalent unit (FEU), a standard unit for measuring the capacity of container ships and volume of cargo.
On the tanker side, spot rates for very large crude carrier (VLCC) voyages between the Middle East and China are up 154% week-over-week. Rates on the long-range tankers’ (LR2) Middle East-Japan trade route are up 148% and Middle East-Japan very large gas carrier (VLGC) rates are up 33%.
The reason behind the increase in rates includes the added expenses on security measures, higher bunker fuel prices, and fuel costs as vessels use more fuel due to faster sailing through high-risk areas.
Marsh McLennan, the world’s largest marine insurance broker, noted hull and machinery insurance rates for vessels transiting the Strait of Hormuz have increased by more than 60%.
In light of the latest wave of defense measures, Bimco is encouraging shipowners to review their security risk assessments and carefully consider mitigation measures.
“Merchant ships in the area should consider reducing their exposure to threats from Iran, for example, by routing away from the Iranian coast,” said Larsen. “We also recommend that ships maintain close contact to naval forces in the area through UK Maritime Trade Operations, maintain strong vigilance and increased lookout, report suspicious sightings and events to UKMTO, and increase the resilience of ships to absorb damage by ensuring watertight integrity and readiness of damage control organization including firefighting capability.”
“Bimco never directly recommends shipowners to completely stay away from a conflict area. Such a decision should be taken by the shipowner, taking into consideration all relevant factors of the security risk assessment, including, for example, the threat, the ship’s vulnerabilities, and the risk acceptance level of seafarers, the shipowner, and the cargo owner.”
Environment
BYD Yangwang launches ultra-swanky U8L SUV with 24k gold emblems (don’t worry, this one floats too)
BYD’s ultra-luxury sub-brand, Yangwang, launched its fourth all-electric model in China, and it’s another design marvel. Like its U8 predecessor, the Yangwang U8L SUV has “Emergency Float Mode.” Plus, this one can tank turn, is powered by four motors, and has 24-karat emblems. Check out one of the most expensive new BEVs in China.
Yangwang, which directly translates to “looking up” or “admire,” is an ultra-premium brand under the BYD umbrella introduced in 2023. The luxury-centric marque turned some heads out of the gate at the 2023 Shanghai Auto Show, where it unveiled the U8 SUV, which can go amphibious in emergencies and crabwalk.
Since then, Yangwang has followed up with a 1,200-horsepower electric supercar called the U9, hands down the most beautiful vehicle I saw during my visit to the 2025 Shanghai Auto Show.
In early 2024, Yangwang unveiled its first sedan, the 500-mile range U7, to complete an initial trio of flagship models. By August, we learned Yangwang was hard at work on a fourth model – a third-row variant of the U8 SUV called the U8L – which promised to be longer and even more luxurious.
Today, Yangwang officially launched the U8L in China, beginning in a single “Dingshi Edition” trim that starts at RMB 1.28 million ($179,800) – debuting as one of the most expensive models amongst all Chinese automakers.
Yangwang U8L offers Rolls-Royce-style luxury
Today’s launch marks Yangwang’s deeper push into the luxury SUV market in China, looking to compete against brands like Mercedes-Benz and Range Rover. Yangwang’s new U8L takes the U8 to another level, offering more space and other comforts.
For example, the Yangwang U8 measures 5,319 mm long, 2,050 mm wide, and 1,930 mm tall, with a wheelbase of 3,050 mm. In comparison, the new U8L measures 5,400 mm long, 2,049 mm wide, and 1,921 mm tall, with a wheelbase of 3,250 mm.
The longer length and wheelbase allow for a new third row atop BYD’s e4 platform, which also houses four electric motors. That powertrain configuration combines for 880 kW (1,180 horsepower) and peak torque of 1,280 Nm, accelerating from 0 to 100 km/h (0-62 mph) in 3.5 seconds. Not bad for an SUV.
Per Yangwang, the U8L also comes equipped with BYD’s DiSus-P body control system—the Chinese automaker’s most advanced version, enabling premium comfort and stability on any terrain. The U8L also features BYD’s most advanced ADAS, “God’s Eye A.” In the images above, multiple sensors are visible above the windshield.
Other features include emergency flotation mode, blown tire stability, tank turns, and a crabwalk. Plus, fully reclining seats, window privacy curtains, and a rear storage fridge for your Cristal. Due to its size, the Yangwang U8L’s all-electric CLTC range is only 200 km (124 miles), but it features a hybrid range extender that boosts its overall range to 1,160 km (700 miles).
What do you think about this SUV?
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The bZ7 is about the size of a Tesla Model S and way nicer than you’d expect. Toyota’s new flagship EV is not only stunning-looking, it’s also loaded with advanced tech.
Meet the bZ7, Toyota’s new flagship EV
Toyota’s joint venture in China, GAC-Toyota, unveiled official images of the bZ7 this week, its new flagship all-electric sedan.
The bZ7 is 5,130 mm long, which is slightly longer than the Tesla Model S and BYD Han L. Although it has Toyota’s updated “hammerhead” front end design, like the new Camry and Crown, the flagship EV is a big step up from the Toyota vehicles we see on the road today.
Toyota said its new EV has “a luxurious and elegant figure,” and we’d have to agree. From the side, it has a sleek, fastback design that blends sporty and elegant. The long, triangular side windows open up the interior.
The bZ7 is also Toyota’s most advanced EV yet. It will be the first vehicle to feature Xiaomi’s “Human x Car x Home” smart ecosystem, which unlocks new functions such as controlling smart home appliances directly from the vehicle’s infotainment system or your smartphone.
Forgot to set the air? Xiaomi’s smart tech allows you to control it on the go. During its tech day event in June, Toyota announced new partnerships with Xiaomi, Momenta, and Huawei, or what it called the “car industry bigwigs,” for the latest tech and software.
The bZ7 has a Lidar installed on the roof, which will be used to support Momenta’s latest smart driving system, Momenta 6.0. It’s expected to be offered on higher trim options.
On the inside, the cabin is a step change from most Toyota models with a minimalist, elegant layout. It features a floating central touchscreen, a driver display screen, and a wireless phone charger.
Toyota’s flagship EV will also use Huawei’s electric motors and its new HarmonyOS cockpit system. According to Li Hui, the General Manager of Toyota China, “To deliver cars that people want in China, we need Chinese brains and hands involved in development.
We will learn prices, battery specs, and range closer to the bZ7’s official debut, which is expected later this year. Toyota’s new flagship EV will join the bZ3X and bZ4X as it fights for its spot in China’s competitive electric vehicle market.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from British bike maker Boost, Dahon launching an IPO, the NYPD may soon confiscate non UL-certified e-bikes, Honda has a new e-motorcycle coming, and more.
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