Potential Fate of the Vessel

CMA CGM's CEO said on July 3, 2026, that the company is actively considering sending the San Antonio for scrapping . The damage is reportedly beyond economical repair for a vessel of its size and age. A final decision has not yet been formally announced, but scrapping is described as the likely outcome.

Broader Implications for Global Shipping Through the Strait

The attack on the San Antonio is part of a much larger crisis in the Strait of Hormuz that has fundamentally reshaped the risk and cost calculus for global shipping.

• Insurance costs have skyrocketed. War risk premiums for a single transit have surged from roughly 0.125% of vessel value before the crisis to as much as 4000 times higher in some cases, making the strait the world's most expensive waterway to insure . Some major maritime insurers have canceled war risk coverage for the Gulf altogether .
• The US-led security corridor was paused. Shortly after the San Antonio attack, President Trump announced a temporary "pause" of the "Project Freedom" maritime security corridor program that was meant to escort commercial vessels through the strait .
• Rerouting and trade disruption. The cumulative effect of missile strikes, mine threats, naval deployments, and prohibitive insurance has drastically reduced commercial traffic through the strait . Ships are increasingly diverting around the Cape of Good Hope or seeking alternative routes, adding weeks of transit time and billions in extra costs .
• Global economic impact. The crisis has turned the Strait of Hormuz — through which roughly 20 million barrels of oil and significant volumes of LNG and containerized cargo pass daily — from a critical trade artery into a major financial pressure point, with war risk alone estimated to add tens of billions of dollars in annual costs to global trade .

Potential Fate of the Vessel

CMA CGM's CEO said on July 3, 2026, that the company is actively considering sending the San Antonio for scrapping . The damage is reportedly beyond economical repair for a vessel of its size and age. A final decision has not yet been formally announced, but scrapping is described as the likely outcome.

Broader Implications for Global Shipping Through the Strait

The attack on the San Antonio is part of a much larger crisis in the Strait of Hormuz that has fundamentally reshaped the risk and cost calculus for global shipping.

• Insurance costs have skyrocketed. War risk premiums for a single transit have surged from roughly 0.125% of vessel value before the crisis to as much as 4000 times higher in some cases, making the strait the world's most expensive waterway to insure . Some major maritime insurers have canceled war risk coverage for the Gulf altogether .
• The US-led security corridor was paused. Shortly after the San Antonio attack, President Trump announced a temporary "pause" of the "Project Freedom" maritime security corridor program that was meant to escort commercial vessels through the strait .
• Rerouting and trade disruption. The cumulative effect of missile strikes, mine threats, naval deployments, and prohibitive insurance has drastically reduced commercial traffic through the strait . Ships are increasingly diverting around the Cape of Good Hope or seeking alternative routes, adding weeks of transit time and billions in extra costs .
• Global economic impact. The crisis has turned the Strait of Hormuz — through which roughly 20 million barrels of oil and significant volumes of LNG and containerized cargo pass daily — from a critical trade artery into a major financial pressure point, with war risk alone estimated to add tens of billions of dollars in annual costs to global trade .