Steam LNG carriers set for short-lived gains from early Hormuz transits 

Fearnley LNG told Riviera that it has observed increased interest in steam vessels for Middle East Gulf-Strait of Hormuz transits, partly due to lower insurance costs.

However, the brokerage firm believes these older vessels are likely to remain only a temporary solution. As the security situation in the Middle East normalises, Fearnley LNG expects continued underutilisation across the steam fleet.

As of early May, there were 191 active steam LNG carriers globally, accounting for around 24% of the existing fleet, according to Drewry Maritime Research.

Of these, approximately 75 vessels were between 15 and 20 years old, while 51 were aged between 20 and 25 years. A further 34 ships were more than 25 years old. By comparison, 19 vessels were between five and 10 years old, while another 12 fell within the 10-15 year age bracket.

Notably, Fearnley LNG said in a recent report that this year has marked a strong rebound in secondhand activity, with buyers once again acquiring older tonnage for trading or conversion. This follows 2025, which the broker described as the year of demolition, as scrapping activity accelerated.

The average age of the vessels sold exceeds 20 years, while their average cargo capacity is around 147,000 m³.

Hormuz traffic continues despite tensions

Despite the recent increase in regional tensions, which peaked with renewed strikes on commercial vessels, LNG carrier transits have continued, maintaining the recent rise in traffic following the memorandum of understanding between the US and Iran.

Reuters reported on 29 June that two ballast LNG carriers reappeared on ship-tracking data west of the Strait of Hormuz on 26 June after going dark, while two laden vessels departed the area over the weekend. The cargoes are reportedly bound for India and China.

Clarksons said on 26 June that 10 LNG carriers entered the Gulf during the previous week, compared with just three between March and May, "amid signs that Qatar is poised to re-boot production at North Field."

Notably, following the strike on container vessel Ever Lovely on 25 June, some ships made U-turns while attempting to transit the Strait of Hormuz.

ICIS senior LNG analyst Alex Froley told Riviera on 26 June that one LNG carrier built in 2008 turned back east, away from the Strait, while in the middle of a westbound crossing to Qatar to load a new cargo. A second vessel, built in 2013, also altered course before approaching the Strait as closely.

According to MarineTraffic data, 108 vessels were confirmed to have transited the Strait of Hormuz between 26 and 28 June, with traffic peaking on 26 June at 48 ships.

Of the 108 transits, 39 followed the Omani route, 37 the Iranian route, 23 were classified as dark or of unknown route, and nine followed the International Maritime Organization (IMO) route