COSCO Shipping Lines, China’s largest shipping company, has officially resumed new booking services for container shipments from the Far East to several key Middle Eastern destinations, with the United States and Iran currently engaged in ceasefire talks, despite statements by Tehran that the U.S. military is “negotiating with itself”.
COSCO has reinstated bookings for standard general cargo containers to Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Kuwait and Iraq after declaring to the International Maritime Organization (IMO) that “non-hostile vessels” from countries not participating in or supporting aggression against Iran would be granted safe passage through the Strait of Hormuz. All six nations listed in COSCO’s notice have previously faced Iranian missiles and drone strikes targeted at energy infrastructure and critical facilities.
Three weeks ago, COSCO halted all new bookings and instructed vessels already in the Gulf to seek “safe waters” after Iran effectively closed the Strait of Hormuz to most traffic. The company’s move reflects growing confidence in ongoing ceasefire talks and a 15-point peace plan reportedly sent to Tehran by the U.S. administration. However, COSCO has cautioned that all booking arrangements and actual carriage remain subject to change without notice due to the highly volatile regional situation.
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Previously, reports emerged that Iran has begun imposing a $2 million “transit fee” on select oil tankers and commercial vessels passing through the Strait of Hormuz, essentially turning the strategic waterway into a private, pay-to-pass toll zone. The ad hoc charge is distinct from official Suez Canal fees. Iranian officials justify the fees as a “cost of war” or a security tax, essentially operating a protection racket for passage. The move has led to increased war-risk insurance premiums, with a Very Large Crude Carrier (VLCC) potentially paying an additional $3.6 to $6 million in insurance on top of the $2 million transit toll, causing global energy costs to surge dramatically.
It’s not clear whether the current truce will last. The United States is currently conducting a significant military buildup in the Middle East, even as President Donald Trump publicly claims that peace negotiations with Iran are underway. The U.S. has sent around 8,000 military personnel to the Middle East, with total U.S. troop levels in the Central Command area expected to reach approximately 50,000 once these units arrive.
By Alex Kimani for Oilprice.com
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