China’s COSCO Halts New Orders from UAE, Qatar, and Saudi Arabia: Navigating Turbulent Waters Amid Strait of Hormuz Restrictions

Chinese shipping and logistics giant COSCO Shipping Lines announced on Wednesday the suspension of all new bookings for routes to and from various ports in the Middle East, including key locations in the United Arab Emirates and Saudi Arabia. This action follows rising tensions and conflict in the region, coupled with increasing traffic restrictions in the strategically critical Strait of Hormuz. The company issued a statement explaining that this decision aims to ensure the safety of cargo and maintain operational stability amid the shifting landscape.

“Given the escalating conflicts in the Middle East and the resultant restrictions on maritime traffic through the Strait of Hormuz, COSCO SHIPPING LINES has determined, based on the latest risk assessment results, to suspend all new booking services for relevant routes effective immediately until further notice,” the company stated. This suspension extends not only to the UAE and Saudi Arabia but also includes bookings for routes to and from Bahrain, Iraq, and Kuwait.

For cargo that is already in transit, COSCO is preparing to conduct a thorough assessment to determine the best course of action for disposal. This process will involve identifying potential alternative discharge ports and adhering to all relevant provisions outlined in the bill of lading.

While the suspension affects many routes, ports such as Jeddah in Saudi Arabia, as well as Khor Fakkan and Fujairah in the UAE, remain unaffected as they do not require passage through the Hormuz Strait. The Strait of Hormuz is a pivotal maritime corridor, responsible for the transit of approximately 20% of the world’s oil, with tankers carrying vital resources from several Middle Eastern countries, including Saudi Arabia, Kuwait, Iraq, and Qatar, primarily destined for Asian markets.

This recent decision by COSCO follows alarming statements from a senior official within the Islamic Revolutionary Guard Corps (IRGC), who claimed that the Strait of Hormuz would be closed and that any vessels attempting to navigate through the passage would be targeted. Such threats have prompted heightened caution among shipping companies operating in the area.

COSCO is not alone in its decision to halt operations; several other prominent shipping firms like Maersk and MSC have also paused their activities in the Strait of Hormuz, further underscoring the significance of the ongoing geopolitical tensions in the region. The impact of these suspensions is likely to ripple through global supply chains, affecting oil prices and shipping rates as companies scramble to adapt to the evolving situation.

As the conflict in the Middle East continues to escalate, the shipping industry remains on edge, balancing the urgent need for operational safety against the critical demand for goods and resources flowing through one of the world’s most vital trade routes. Industry analysts will be closely monitoring developments in order to gauge their potential impact on maritime logistics and global energy markets in the coming weeks.

Original Source: https://www.livemint.com/news/world/chinas-cosco-suspends-new-orders-from-uae-qatar-saudi-arabia-others-amid-strait-of-hormuz-restrictions-11772616382630.html
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Publish Date: 2026-03-04 17:29:00