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COSCO Shipping has suspended all new bookings for routes to and from Middle Eastern ports due to rising conflict and traffic restrictions in the Strait of Hormuz.
Chinese shipping and logistics conglomerate COSCO Shipping's container liner unit announced on Wednesday that it has suspended all new bookings for routes to and from ports in parts of the Middle East, including those in the United Arab Emirates and Saudi Arabia.
The move was due to escalating conflict in the region and traffic restrictions in the Strait of Hormuz, COSCO Shipping Lines said in a statement.
“In view of the escalating conflicts in the Middle East region and the resultant restrictions on maritime traffic through the Strait of Hormuz, to maximise the safety of your cargo and the stability of overall shipping operations, COSCO SHIPPING LINES has decided, based on the latest risk assessment results, to suspend all new bookings services for relevant routes with immediate effect until further notice," the statement read.
Additionally, bookings for routes to and from Bahrain, Iraq, and Kuwait have also been suspended, the state-owned, Shanghai-based firm said.
What happens to cargo on board?
For the cargo already on board, the company said it will conduct a comprehensive assessment of the subsequent disposal plans, which will include the research and confirmation of potential contingency discharge ports and other relevant matters. All relevant provisions will be implemented in accordance with the bill of lading terms and conditions of COSCO shipping lines.
Jeddah in Saudi Arabia, along with Khor Fakkan and Fujairah in the UAE, are not subject to the suspensions and can be accessed without passing through the Hormuz Strait.
The latest announcement comes after a senior official of the Islamic Revolutionary Guard Corps (IRGC) announced the closure of the Strait of Hormuz, warning that any vessel that will attempt to transit the arterial waterway would be targeted, according to reports.
The Strait of Hormuz is a narrow passage connecting the Persian Gulf, through which approximately 20% of the world's oil is transported. Tankers passing through, bordered to the north by Iran, carry oil and gas from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran. The majority of this oil is destined for Asian markets.
COSCO is one of several leading shipping companies that have suspended vessel operations in the Strait of Hormuz, a vital route for global energy transit. Similarly, other major shippers such as Maersk and MSC have also announced they are halting operations in the region, AFP reported.
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