Full Breakdown
COSCO Resumes Shipments to Gulf Countries Amid Middle East Tensions
3/25/2026, 11:31:32 PM
Resumption of Shipping Services
On March 25, 2023, Chinese shipping giant COSCO announced the resumption of new bookings for container shipments to several Gulf countries, including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq. This decision follows a three-week suspension of operations due to escalating conflicts in the Middle East, particularly affecting maritime traffic through the Strait of Hormuz, a critical waterway for global oil and gas transport.
COSCO's suspension began on March 4, 2023, as tensions in the region intensified, leading to a significant reduction in shipping traffic—reportedly by as much as 97% at one point. The company indicated that the resumption of bookings is contingent on the volatile situation in the region, stating that "new booking arrangements and the actual carriage are subject to change."
Context of the Decision
The resumption of COSCO's services comes after Iran's announcement that "non-hostile vessels" would be granted safe passage through the Strait of Hormuz, provided they comply with safety and security requirements. This announcement was made via a statement from Iran's permanent mission to the United Nations and was intended to reassure shipping companies about the safety of their operations in the region.
The Strait of Hormuz is vital for global energy supplies, with approximately one-fifth of the world’s oil and liquefied natural gas passing through it. The recent military actions, including US and Israeli strikes on Iran, had prompted other shipping companies, such as Maersk and Hapag-Lloyd, to reroute their vessels around Africa to avoid the strait.
Official Statements & Responses
COSCO emphasized the need to monitor the situation closely, reflecting a pragmatic adjustment to maintain trade flows despite ongoing risks. Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, noted that the company's decision aims to limit supply chain disruptions.
Chinese Foreign Ministry spokesperson Lin Jian highlighted the importance of maintaining peace and stability in the Middle East, stating, "The pressing priority is for the parties concerned to step up to their responsibilities and immediately stop military operations to avoid further deterioration and escalation of the situation."
Criticism & Opposition
Despite the easing of restrictions, concerns remain regarding the reliability of shipping routes. Experts warn that the evolving conditions in the Middle East could still pose significant risks to maritime operations. The uncertainty surrounding the situation has led to increased insurance costs and volatility in freight rates and energy prices.
What's Next
As COSCO resumes its operations, the company will continue to assess the situation in the Middle East, indicating that future bookings and shipments may be adjusted based on developments in the region. The international community is closely watching these changes, as they could have broader implications for global trade and energy markets.
