Contract lawyers have advised Platts that Middle East LNG exporters could spend several years addressing contractual disagreements and making up for missed deliveries once LNG tanker traffic through the Strait of Hormuz resumes. A significant backlog of claims is anticipated, potentially influencing cargo programming until at least 2027.
The core issue revolves around whether standard base volumes will be prioritized for restoration or if deferred and missed cargoes will be addressed first. This situation creates considerable uncertainty for LNG buyers and sellers regarding future supply commitments and pricing.
For freight forwarders and logistics professionals, this implies continued volatility and potential disruptions in the LNG shipping market. Even with the Strait of Hormuz reopening, the contractual complexities and the need to reconcile past obligations mean that a rapid return to normal scheduling and capacity is improbable. Forwarders should anticipate ongoing challenges in securing LNG tanker slots and managing lead times, with potential impacts on spot rates as carriers navigate these intricate contractual resolutions. Shippers may face difficulties in forecasting supply availability and could experience delays in receiving contracted volumes.
