Middle East Tensions Have Limited Impact on Revenue, No Immediate Plan to Resume Hormuz Voyages

Created on 04.13

During a recent results briefing, COSCO Shipping Holdings addressed investor concerns regarding the impact of Middle East tensions on company operations. The company stated that recent tensions in the region have exerted only a limited overall impact on its revenue, and it currently has no immediate plans to resume voyages through the Strait of Hormuz.

Limited Financial Impact Due to Small Middle East Route Share

Xiao Junguang, Board Secretary of COSCO Shipping Holdings, noted that the shipping capacity assigned to Middle East routes accounts for a relatively small proportion of the company's global fleet. Consequently, the ripple effects of regional tensions remain well contained, with revenue from these routes making up only a small part of the group's total earnings, thus limiting the current financial impact.

This response addressed investor questions raised during the briefing about how Middle East tensions might affect freight rates and earnings in 2026, as well as whether contingency plans had been activated.

Booking Policy Adjustments: A Timeline

COSCO Shipping's recent operations on Middle East routes have followed a "suspension – resumption" pattern:

March 4

– The company issued a customer notice suspending new bookings for Middle East-related routes

March 25

– The company restarted container booking services from the Far East to destinations including the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, Iraq, and Oman via multimodal transport solutions

These adjustments reflect the company's strategy of balancing risk management with maintaining trade flows.

Two Vessels Successfully Exit the Gulf

Notably, two COSCO Shipping container ships – CSCL Indian Ocean and CSCL Arctic Ocean – exited the Gulf via the Strait of Hormuz on March 30, having turned around from a previous attempt to enter the region. This successful departure has been interpreted by the market as a prudent operational move under complex conditions.

The company also stated that market demand is gradually recovering, but given persistent uncertainties in the Middle East, booking policies and actual sailing schedules may still be adjusted accordingly.

Global Network Overview

As of early 2026, COSCO Shipping Holdings operates a total of 308 international routes, together with 62 coastal routes in China and 85 feeder routes in the Pearl River Delta and Yangtze River regions, calling at 654 ports in approximately 146 countries and regions worldwide.

As of the end of 2025, the company's owned container fleet comprised 590 vessels with a total capacity of about 3.6 million TEU.

Industry Insight: Diversification as a Risk Buffer

The information released during this results briefing suggests that COSCO Shipping Holdings has effectively diversified its concentration risk from regional conflicts through its global route network. The relatively small share of Middle East routes in its overall business allows the company to maintain relatively stable operational performance during periods of regional tension.

For container manufacturing and trading companies, this case offers a useful lesson. Against the backdrop of increasingly fragile global supply chains, customer demand for route diversification and logistics flexibility is rising. The ability to offer multi-route options and respond quickly to changing situations is becoming an important factor for cargo owners when choosing logistics partners.

This article is based on publicly disclosed company information and industry data, reflecting the latest developments in global shipping operations.

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.