Strait of Hormuz Shows Signs of Easing, COSCO First to Resume Middle East Routes

Created on 03.30

After nearly a month of heightened tensions, shipping routes through the Strait of Hormuz are showing signs of easing. Chinese shipping giant COSCO has announced the resumption of bookings on key Far East–Middle East routes, becoming the first major container carrier to restart regular cargo services to the region since the recent crisis began.

The decision reflects both a response to Iran's conditional reopening of the strait and a careful balancing act between geopolitical risk and the need to maintain supply chain continuity.

I. From Full Suspension to Conditional Resumption

In early March, following U.S. and Israeli strikes on Iran and the effective closure of the Strait of Hormuz, virtually all major container carriers pressed pause on Middle East services. COSCO also suspended new bookings to and from six Gulf countries—the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq.

The turning point came this week. Iran's permanent mission to the United Nations posted on social media that "non-hostile" vessels—including those linked to other countries—could be granted safe passage through the Strait of Hormuz, provided they refrain from hostile actions against Iran and comply with relevant safety requirements.

Following the announcement, COSCO issued a service notice on its official WeChat account, confirming the resumption of new bookings to the six countries.

Diverging Strategies Among Carriers

Notably, COSCO's move does not reflect an industry-wide consensus. According to media reports, Maersk, Hapag-Lloyd, and CMA CGM began rerouting vessels around Africa in early March, avoiding the Suez Canal and the Bab el-Mandeb Strait. As of this week, none of these carriers have announced a return to regular Middle East services.

This divergence reflects a fundamental reality: when facing the same geopolitical risks, different companies draw the line at different points. COSCO's decision to resume services quickly after conditions eased prioritizes supply chain continuity, while other carriers appear to be waiting for greater clarity before committing.

II. The Strategic Importance of the Strait of Hormuz

The Strait of Hormuz is one of the world's most sensitive maritime chokepoints. Industry data shows that approximately one-fifth of global oil and liquefied natural gas supplies pass through this narrow waterway. At the height of recent tensions, traffic through the strait plunged by as much as 97%, while insurance costs surged and freight rates became highly volatile.

For container shipping, the strait's importance is equally significant. It is the only sea route in and out of Persian Gulf ports and a critical link in Asia–Middle East trade. The six countries included in COSCO's resumed service represent a substantial flow of goods—from machinery and construction materials to consumer products—all dependent on this maritime artery.

III. Expert Insight: The Logic Behind Conditional Resumption

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, described COSCO's decision as a "pragmatic adjustment following a reassessment of the situation."

"There is a time lag between booking and cargo delivery, and during that period, route reliability still depends on how the situation evolves," Zhou said. He noted that shipping companies today face a difficult choice: they cannot afford to suspend operations entirely, but they also cannot ignore the risks. Operating amid uncertainty has become the new reality.

COSCO itself acknowledged this in its announcement, stating that given the volatile situation in the Middle East, new booking arrangements and actual shipments remain subject to change, and that the company will continue to closely monitor developments. The cautious language serves both as a customer notification and a reminder that uncertainty persists.

IV. Diplomatic Response: Calls for De-escalation

When asked whether any Chinese vessels had successfully transited the Strait of Hormuz following Iran's announcement, Chinese Foreign Ministry spokesperson Lin Jian did not confirm specific vessel movements but emphasized that maintaining peace and stability in the Middle East and keeping shipping lanes safe serves the common interests of the international community.

"The pressing priority is for the parties concerned to step up to their responsibilities and immediately stop military operations to avoid further deterioration and escalation of the situation, and prevent the turmoil from causing a greater impact on the global economy," Lin said.

The diplomatic messaging echoes the pragmatic approach taken by COSCO: while calling for de-escalation through official channels, maintaining basic trade flows through flexible operational adjustments on the ground.

V. Outlook: Easing Is Not Normalization

While the resumption of services sends a positive signal, industry consensus holds that the "conditional opening" of the Strait of Hormuz is far from a return to normal conditions.

In the near term, shipping companies face three major uncertainties: whether tensions will escalate again; whether insurance costs and surcharges will recede; and whether other carriers will follow suit in resuming Middle East services.

For businesses trading with the Middle East, the current situation means that booking windows are reopening, but supply chain reliability still requires dynamic assessment. COSCO's decision to be the first to restart services reflects both a response to customer needs and a calculated move to maintain competitiveness in a complex operating environment.

Whatever the near-term trajectory, the Strait of Hormuz will remain a vital artery for global trade. And each time shipping companies weigh risk against stability, they help define the resilience of global supply chains.

This article is based on publicly available industry information and official statements, reflecting the latest developments in Middle East shipping routes.

LongTeng Group is a private owned enterprise group involves in designing, manufacturing, trading and transporting of ISO dry cargo container, special container and house container, reefer container, tank container. Also provide container spare parts for repairing and manufacturing new container. The group have exported to over 60 countries. The total annual production capacity is 120,000 TEU of ISO Containers.