Economy May 11, 2026 10:24 AM

Norden Says Persian Gulf Disruption Could Persist Through End of 2026, Anchors Guidance to That Scenario

Danish shipping group frames its full-year outlook around a prolonged closure of the Strait of Hormuz as tanker earnings rise and long-term contracts are extended

By Jordan Park

D/S Norden A/S is basing its full-year guidance on the working assumption that vessels currently detained in the Persian Gulf will remain there until the end of 2026. The company describes this as a planning scenario driven by limited visibility rather than a forecast of the most likely outcome, while highlighting stronger tanker earnings and a higher proportion of long-term contract coverage.

Norden Says Persian Gulf Disruption Could Persist Through End of 2026, Anchors Guidance to That Scenario

Key Points

  • D/S Norden is basing full-year guidance on an assumption that vessels trapped in the Persian Gulf will stay there through the end of 2026, reflecting limited visibility rather than a forecast of the most likely scenario.
  • The Strait of Hormuz has been effectively closed since late February, with about 1,300 vessels engaged in trade currently stuck in the Gulf, according to an OECD maritime tracker released Monday.
  • Norden has seven chartered vessels in the Gulf and has secured long-term contracts covering roughly 80% of its tanker capacity over the next three years, compared with typical levels near 50%.

D/S Norden A/S, one of the largest global players in commodity shipping, is using a planning assumption that ships trapped in the Persian Gulf will stay there through the end of 2026 as the basis for its full-year guidance.

Jan Rindbo, the Denmark-based group's chief executive officer, said the scenario reflects the limited visibility the company faces rather than a prediction of the most probable path. He emphasized that the assumption is a planning construct to guide operational and financial expectations.

The Strait of Hormuz has been effectively closed since late February. An OECD maritime tracker released Monday reported that roughly 1,300 vessels currently engaged in trade are stuck in the Gulf.

Norden itself has seven chartered vessels stranded in the Gulf. The company raised its full-year outlook last week, citing higher tanker earnings driven by disruptions to global oil flows linked to the war in Iran.

Rindbo warned that when transit through the strait does resume, passage will probably be subject to specific conditions and that a queue of ships waiting to transit will create a backlog. He said he has worked in shipping for more than three decades and has not encountered a comparable situation in his career.

Even after the route reopens, Rindbo noted, it may take time for shipowners to regain confidence in the safety of the passage and for traffic patterns to normalize.

Responding to the uncertainty, Norden has arranged long-term contracts covering about 80% of its tanker capacity for the next three years. Rindbo contrasted that level of coverage with the company's more typical securitization of around 50% of tanker capacity.


Context and implications

The firm's planning choice highlights how acute operational disruptions can be incorporated into corporate guidance when visibility is constrained. Norden's inflated contract coverage and the raise in its outlook reflect an operational response to market dislocation while acknowledging uncertainty about timing and conditions for a return to normal transit through the Strait of Hormuz.

What remains limited in the record

The company characterizes the assumption as a planning approach; it does not present the assumption as the most likely outcome. Details on the specific contractual counterparties, the precise structure of the long-term contracts, or the timeline for the restoration of typical traffic flows were not provided.

Risks

  • Uncertainty over the duration and conditions surrounding the Strait of Hormuz - impacts shipping operations, tanker earnings, and global oil trade.
  • Potential backlog and slower normalization of traffic even after the route reopens - affects logistics, schedule reliability, and vessel utilization in shipping markets.
  • Market visibility limitations mean planning assumptions may not match actual developments, posing forecasting risks for investors and counterparties in energy and shipping sectors.

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