The container lines unit of Chinese shipping and logistics conglomerate COSCO Shipping said on Wednesday that it has suspended all new route bookings to and from ports in parts of the Middle East, including those in the United Arab Emirates and Saudi Arabia.
The move was prompted by the escalating conflict in the region and traffic restrictions in the Strait of Hormuz, COSCO Shipping Lines said in a statement.
“Due to the escalating conflicts in the Middle East region and the resulting restrictions on maritime traffic through the Strait of Hormuz, in order to maximize 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 booking services for the relevant routes with immediate effect until further notice,” the statement said.
In addition, route bookings to and from Bahrain, Iraq and Kuwait have also been suspended, the Shanghai-based state-owned firm said.
What happens to the cargo on board?
For cargo already on board, the company said it will conduct a comprehensive assessment of subsequent disposal plans, which will include surveying and confirming potential emergency discharge ports and other relevant matters. All relevant provisions will be made in accordance with the terms of the COSCO Sea Lines Bill of Lading.
Jeddah in Saudi Arabia, along with Khor Fakkan and Fujairah in the United Arab Emirates, are not subject to the suspension and can be entered without going through the Strait of Hormuz.
The latest announcement comes after a senior official of the Islamic Revolutionary Guard Corps (IRGC) announced the closure of the Strait of Hormuz and warned that any vessel attempting to pass through the artery would reportedly be targeted.
The Strait of Hormuz is a narrow passage connecting the Persian Gulf through which approximately 20% of the world’s oil is transported. The tankers passing through border Iran in the north, carrying oil and gas from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran. Most of this oil is destined for Asian markets.
COSCO is one of several leading shipping companies to suspend operations in the Strait of Hormuz, a vital route for global energy transit. Similarly, other major carriers such as Maersk and MSC have also announced they are suspending operations in the region, AFP reported.
