Chinese shipping giant Cosco has ordered ships in or bound for the Gulf to seek “safe waters,” as traffic in the vital waterway is impeded in the aftermath of US-Israeli strikes on Iran.
Shipping Disruptions Mount
The Shanghai-based, state-owned firm is the latest of several major shipping groups to announce suspended operations following Iran’s Revolutionary Guards’ declaration on Saturday that the Strait of Hormuz was closed.
According to a statement released Sunday, Cosco instructed ships headed for the Gulf to prioritize navigational safety, with measures including speed reduction and awaiting further instructions at designated sheltered anchorages.
The company stated it was “evaluating contingency plans” for all cargo on affected vessels, “including potential alternative discharge ports.”
Broader Impact on Global Shipping
Other shipping giants, including Maersk and MSC, have also announced halted operations in the region. On Sunday, state media in Oman – which sits across the strait from Iran – reported an oil tanker off its coast was targeted, injuring four crew members. UK authorities also reported an incident involving a ship off the UAE’s coast near the strait, which was hit by an “unknown projectile causing a fire.”
Frequently Asked Questions
What prompted Cosco’s decision?
Cosco’s decision was prompted by impeded traffic in the Gulf following US-Israeli strikes on Iran.
What is Cosco instructing its ships to do?
Cosco is instructing vessels already in the Gulf to proceed to “safe waters” to hover or anchor and ships headed for the Gulf to prioritize navigational safety.
Which other shipping companies have halted operations?
Maersk and MSC have also announced halted operations in the region.
How will these disruptions impact global trade routes?
