CorkyskogIran begins mining Strait of Hormuz as Washington's tanker escort claim collapses - Türkiye Today
✺roguetrick✺The convoy idea is so dumb that I can’t believe anyone said it out loud. Effective strategy against commerce raiders, which Iran explicitly does not have. Might as well offer to mount a CIWS on tankers and hope your insurance premiums will see it as a wash (they won’t). Makes as much sense as suggesting you counter drones with cavalry.
GhostalmediaIf I was one of those oil companies, I’d say sure. You staff the tanker with your people and you insure us for any losses incurred. Also, put an upfront amount of insurance money in escrow.
But we’re not risking lives, merchandise, and equipment. You want the oil that badly. You move it. We’re just going to raise oil prices to cover our losses in the meantime, so we’re fine.
Oh they tried this, admin offered to pay oil companies for damages and move it themselves. Little catch there is tanker ships take half a decade or longer to build. The companies cannot afford to roll the dice on losing one, even if they’ll get reimbursed for the ship. They lose capacity ($$$) waiting for the replacement.
China and South Korea, but mostly China.
Yeah, losses would wouldn’t just be the cargo and the ship, it would be a decade long hit to earnings. And I’d want to see money for all of that, in escrow, before I moved an inch. Trump is famous for not paying his debts. I’d want all that money secured upfront.
Of course. The US government would have to insure it. No private company is touching that with a 10 foot pole.
No company is going to trust insurance from this administration though. That’s the problem with having a Trump who famously never pays his debts.
Which is why I said insurance in escrow.
Trump is famous for stiffing people. I’d want that money paid upfront and held in escrow by an independent financial firm in a neutral nation.
If a ship gets hit, escrow pays out for the oil, the ship, and the loss of future earnings. If the ships never sink, the money goes back to the US.
It’s not just normal insurance cost either. These ships take years to replace. They also have to insure against the multiple years worth of profits and loss of market share.
Exactly. It’s the ship, the goods, the lost earning over many years, severance for staff that won’t be used, etc. It would be mess.
I also wonder how clean up for a spill would be handled. Currently that’s managed by Iran and the vessel that spilled pays.