Chinese shipping and logistics conglomerate Cosco, which operates one of the world's biggest oil tanker fleets on Wednesday said it was suspending services to and from Gulf countries including the United Arab Emirates, Bahrain, Saudi Arabia, Iraq and Kuwait.
The decision comes amid escalating conflict in the Middle East and traffic restrictions in the Strain of Hormuz, a key waterway for global energy transit, the company said in a statement. However, Jeddah in Saudi Arabia and Khor Fakkan and Fujairah in the UAE are exempt to this suspension and can be accessed without passing through the Hormuz Strait.
The state-owned firm is among several major shipping groups that have halted vessel operations in the Strait of Hormuz. "To maximise the safety of your cargo and the stability of overall shipping operations, COSCO SHIPPING LINES has decided, based on the latest risk assessment results, to suspend all new bookings services for relevant routes with immediate effect until further notice," the statement read.
ALSO READ: 'Will Set Ships Ablaze': Iran Formally Shuts Strait of Hormuz, Issues Stern Warning
For the cargo already on board, the Shanghai-based said it will conduct a comprehensive assessment of the subsequent disposal plans. This will also include the research and confirmation of potential contingency discharge ports and other relevant matters. The company added that all relevant provisions will be implemented in accordance to the bill of lading terms and conditions.
An Iranian Revolutionary Guards official said on Monday that the Strait of Hormuz remains closed amid mounting Middle East tensions and Iran will fire on any ship trying to pass. This is Tehran's strongest warning so far, news agency Reuters reported citing Iranian media.
Iran had earlier said it would block the route, which threatens to choke almost 20% of the global oil flows and send crude prices sharply higher.
"The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze," Ebrahim Jabari, a senior adviser to the Guards commander-in-chief, said in remarks carried by state media.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.