COSCO Container Ships Turn Back from Strait of Hormuz Amid Iran Conflict

Chinese Shipping Giant Diverts Vessels as Persian Gulf Narrows Become Too Dangerous

Two COSCO Shipping container vessels — COSCO Arctic Ocean and COSCO Indian Ocean — have turned back toward the Persian Gulf after approaching the Strait of Hormuz, declining to transit the critical waterway.

What Happened

• Two COSCO vessels approached the strait on the morning of March 27 (Beijing time)
• Both ships reversed course and headed back toward the Persian Gulf
• Neither vessel transited the Strait of Hormuz
• Tracking data confirmed the course changes via AIS signals

Why It Matters

COSCO is China's largest shipping company and one of the world's biggest container carriers. Its decision to avoid Hormuz signals:

• Commercial risk assessment: Even Chinese shipping companies now view the strait as too dangerous
• Insurance implications: War risk premiums for Hormuz transit have likely become prohibitive
• Supply chain disruption: Container traffic between Asia and Europe via the Suez route is being affected

The Bigger Picture

The Strait of Hormuz handles approximately 21 million barrels of oil per day and significant container traffic. With US military operations against Iran ongoing and the passage increasingly contested, major shipping lines face an impossible choice between safety and delivery schedules.

Source: CLS, Zhihu, AIS tracking data