Persistent GPS Jamming in Strait of Hormuz Threatens Global Shipping Stability
Despite a recent de-escalation between Israel and Iran, maritime operations in the Strait of Hormuz remain under strain, with escalating GPS jamming incidents continuing to disrupt commercial shipping routes in one of the world's most critical maritime chokepoints.
Angeliki Frangou, CEO and Chair of Navios Maritime Partners, confirmed that GPS signal interference in the region has become a major operational and security concern, particularly for tanker and cargo ship operators. "We've seen around a 20% drop in vessel traffic through the Strait," Frangou told CNBC. "Ships are increasingly choosing to wait or only pass through during daylight hours due to the danger posed by GPS jamming."
According to the Maritime Information Cooperation & Awareness Center, as of June 20, nearly 970 ships per day were affected by GPS disruptions over the preceding week. Meanwhile, data from maritime intelligence firm Kpler recorded a sharp decline in vessel movement between June 13 and June 22, with the number of unique Maritime Mobile Service Identity (MMSI) signals falling from 16,127 to 7,947. For tankers, the count dropped from 1,120 to 889 during the same period.
The Strait of Hormuz, a 21-mile-wide waterway linking the Persian Gulf and Arabian Sea, is responsible for transporting nearly 20% of global oil and gas supplies. This narrow transit route heightens the risks posed by navigation system interference.
“This situation has elevated safety concerns for both crew and cargo," Frangou emphasized. "Safety remains our top priority, and we are maintaining constant surveillance of these developments.”
The impact is also being felt in shipping costs. Spot ocean freight rates from Shanghai to the UAE port of Khor Fakkan — a critical transshipment hub just outside the Strait — have surged 76% since mid-May, reaching $3,341 per forty-foot equivalent unit (FEU), according to Xeneta, a global freight rate tracker.
Frangou noted that insurance premiums and freight charges are rising rapidly in response to the persistent threat. “On Monday, freight rates effectively doubled,” she said. “While prices can adjust quickly, once they rise, they are difficult to bring down.”
Unlike Red Sea diversions driven by Houthi rebel activity — which allow for alternative routes — ships bound for ports beyond the Strait of Hormuz have no such flexibility, intensifying logistical challenges.
This disruption has also impacted crude oil transportation, with Very Large Crude Carrier (VLCC) spot rates reportedly climbing by $70,000 per day. "Even without a corresponding rise in oil prices, the cost of transporting it has soared," Frangou observed.
As geopolitical tensions linger and technological interference continues to compromise navigational safety, the maritime industry faces increasing uncertainty in one of the world’s most vital sea lanes.
