German shipping company Hapag-Lloyd is losing about 60 million US dollars per week due to the closure of the Hormuz Strait, according to AFP. The company said the high risk of using this strategic waterway has sharply increased fuel and insurance expenses. Based in Hamburg, Hapag-Lloyd cited threats from Iranian drones and small boats as key factors behind the surge in insurance costs.

The company explained that alternative routes through safe ports or land transport are limited and cannot fully replace the regular maritime routes in the region. Iran has required all vessels to undergo verification by the Islamic Revolutionary Guard Corps (IRGC), including sailing near Iranian coasts, providing crew and cargo details, and in some cases making payments.

AFP reported that shipping companies now face a dilemma: either absorb millions in additional costs or risk violating US and EU sanctions by paying Iranian authorities for safe passage.