COSCO has suspended transits through the Strait of Hormuz due to rising security risks in the Middle East, shifting to alternative transport solutions. The move highlights growing disruptions on a key global shipping route and increasing pressure on logistics costs worldwide.
Rising tensions in the Middle East are continuing to impact global shipping operations, with the Strait of Hormuz—one of the world’s most critical maritime routes—facing increasing security risks. In response, COSCO Shipping Holdings has decided to suspend vessel transits through the area while adjusting its operational strategy to mitigate potential disruptions.
According to the company, the situation in the Middle East has so far had a limited impact on overall revenue. However, COSCO confirmed that it currently has no plans to resume sailings through the Strait of Hormuz in the near term, as regional instability remains difficult to predict.
Earlier in March, COSCO temporarily halted new bookings for routes connected to the Middle East. By the end of the month, the company resumed cargo services through alternative multimodal transport solutions, maintaining cargo flows to key markets such as the UAE, Saudi Arabia, Qatar, and Kuwait.
Recent vessel movements highlight the level of caution being exercised. Two COSCO container ships, CSCL Indian Ocean and CSCL Arctic Ocean, departed the Gulf region in late March after previously adjusting their routes due to maritime security concerns. This reflects the operational challenges shipping lines are currently facing in high-risk areas.
On a global scale, COSCO operates more than 300 international routes, connecting approximately 654 ports across 146 countries and regions, supported by a container fleet of nearly 600 vessels with a total capacity of around 3.6 million TEU. According to company representatives, capacity allocated to Middle East routes accounts for only a small share of the overall network, helping to limit broader financial impact.
Nevertheless, the decision by a major carrier like COSCO to suspend operations through the Strait of Hormuz signals that risks in the region are no longer localized but are increasingly influencing global shipping strategies. With over 20% of the world’s oil supply passing through this corridor, any disruption has the potential to drive fuel price volatility and increase freight costs.
Industry experts note that if tensions persist, more carriers may adopt similar contingency measures, including rerouting vessels, applying risk surcharges, or adjusting service schedules. Such developments could lead to higher logistics costs and extended transit times across key international trade lanes.
For exporters and importers, particularly in Asia, closely monitoring geopolitical developments and proactively adjusting transport plans will be critical in maintaining supply chain stability in the coming period.
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