Nordic American Tankers CEO: The strait will open 'sooner than later' due to international pressure

Key Concepts

• Strait of Hormuz: A critical international maritime chokepoint through which approximately 20% of the world's oil supply passes.
• Suezmax Tankers: A naval architecture term for the largest ship capable of transiting the Suez Canal when fully laden; these vessels are the primary focus of Nordic American Tankers (NAT).
• IMO (International Maritime Organization): The UN specialized agency responsible for the safety and security of shipping and the prevention of marine pollution by ships.
• Geopolitical Pressure: The external influence exerted by global powers (including China) and international bodies to ensure the continuity of global trade routes.

1. Operational Stance on the Strait of Hormuz

Herbjørn Hansson, CEO of Nordic American Tankers (NAT), emphasizes that the primary priority for his company is the safety of the crew. While NAT possesses the capability to transit the Strait of Hormuz, the company requires a formal "go-ahead" from the International Maritime Organization (IMO). Hansson identifies the IMO as the only entity with the necessary direct communication channels with Iranian authorities to ensure safe passage.

2. Geopolitical Outlook and Market Stability

Hansson argues that the closure of the Strait of Hormuz is unsustainable due to the sheer volume of global energy dependency (20% of global oil).

• The Necessity of Agreement: He posits that both the United States and Iran are under immense, mounting international pressure—specifically noting that China has entered the diplomatic scene to demand market stability.
• Historical Context: Drawing on his experience in the industry since the early 1970s, Hansson compares the current situation to previous crises, such as the closure of the Suez Canal. He maintains that, historically, such conflicts eventually resolve because the economic necessity of open waterways outweighs the political posturing of the involved parties.
• Predictive Stance: Hansson expresses high confidence that the Strait will be opened "sooner than later," suggesting a timeline ranging from a few days to a maximum of one month.

3. Business Strategy and Fleet Composition

Nordic American Tankers operates a fleet composed exclusively of Suezmax tankers.

• Strategic Importance: Despite the emergence of alternative routes and loading ports (such as Yanbu in Saudi Arabia), Hansson asserts that the Strait of Hormuz remains an "extremely important" and non-negotiable international waterway.
• Market Performance: Despite the geopolitical tensions, Hansson reports that the current market for his ships is robust, with the company achieving "very, very strong rates." He clarifies that NAT remains a commercial entity that avoids political involvement, focusing instead on operational safety and logistical efficiency.

4. Key Arguments and Perspectives

• The "International Waterway" Argument: Hansson maintains that there is "no jurisdictional possibility" for the permanent closure of the Strait of Hormuz, as it is an international waterway governed by global rules that supersede individual national interests.
• Pressure as a Catalyst: The central thesis of the interview is that the combined weight of global economic necessity and diplomatic pressure from major powers will force a resolution between the US and Iran.
• Separation of Politics and Commerce: Hansson explicitly states, "We don't give advice to politicians because we are not involved in politics," reinforcing that his company’s role is to navigate the logistical realities of the market while prioritizing the safety of the personnel on board.

Synthesis and Conclusion

The interview highlights a pragmatic, industry-focused perspective on geopolitical volatility. Herbjørn Hansson views the current disruption in the Strait of Hormuz as a temporary, albeit high-stakes, obstacle that will inevitably be resolved through international diplomatic pressure. By maintaining a strict focus on crew safety and IMO compliance, and leveraging the versatility of a Suezmax-only fleet, Nordic American Tankers continues to operate profitably despite the regional instability. The core takeaway is that global energy infrastructure is too critical to remain blocked for long, and market forces, backed by international diplomatic intervention, will ultimately restore the status quo.