<div id="readability-page-1"><div id="news-body">(Yicai) March 6 -- After Cosco Shipping Lines announced it will suspend all new orders for routes to and from Middle Eastern countries due to local restrictions on maritime traffic, other listed subsidiaries of state-owned shipping giant China Cosco Shipping Corporation told Yicai that their production and operation remain normal.Cosco Shipping Energy Transportation, an investment firm engaged in the transportation of oil and gas, told Yicai yesterday that its production and operations are normal, even though the closure of the Strait of Hormuz has significantly affected global energy transportation. The impact of this situation on its financial data cannot yet be assessed, as first-quarter earnings usually reflect freight rates from December, January, and February, Cosco Shipping Energy added.On March 4, Cosco Shipping Lines said it will halt all new booking services for relevant routes with immediate effect until further notice to maximize the safety of cargo and the stability of overall shipping operations, in view of the escalating conflict in the Middle East and the resultant restrictions on maritime traffic through the Strait of Hormuz. The suspension will affect new bookings from worldwide to the United Arab Emirates, Qatar, Bahrain, Iraq, Saudi Arabia, and Kuwait, and vice versa.Cosco Shipping Development mainly operated container manufacturing and container and ship leasing, so its business will not be directly affected by the situation in the Middle East, the company told Yicai.Cosco Shipping Specialized Carriers’ shipping volume to the Middle East accounts for a relatively small proportion of its business, so the impact of the conflict on its revenue will likely be small, the provider of marine and coastal freight transportation services explained to Yicai.“Cosco Shipping Specialized will continue to monitor developments in the Middle East and may take similar measures to those of Cosco Shipping Lines if there are security risks,” the company noted.Meanwhile, Cosco Shipping Holdings said to Yicai that it will follow Cosco Shipping Lines and suspend all bookings to and from the Middle East. To assess the impact of the conflict on financial data, the container shipping firm will have to wait for the first-quarter earnings report, it added, noting that shipping prices are influenced by multiple factors, and the safety of ships and cargo is the primary consideration at the moment.As of the end of last year, Cosco Shipping Corporation’s fleet of 1,660 vessels had a total capacity of 135 million deadweight tons, ranking first globally, according to its website. The company has over 1,600 branches globally, and its routes cover more than 1,500 ports in over 160 countries and regions.All shipping routes to the Middle East have been suspended, and some ships that were already in transit turned back, a senior expert told Yicai. The industry is in a wait-and-see state, as companies do not know if it is more convenient to wait for the routes to reopen or pay more to ship to a port far from the destination and then turn to transshipment, the expert noted.Other Chinese shipping companies also addressed concerns about the situation in the Middle East these days. On March 3, China Merchants Energy Shipping said that its production and operations are normal, with the overall impact of the Middle Eastern situation expected to be controllable. However, its tanker routes entering and leaving the Persian Gulf face significant safety risks, the firm added.On the same day, Shenghang Shipping said that its international waterway transportation of hazardous chemicals is mainly concentrated in Northeast Asia, Southeast Asia, and India, so the regional conflict in the Middle East has no direct impact on its business operations. However, international oil price fluctuations triggered by the conflict will have a certain impact, the company noted.The container shipping futures market has experienced large fluctuations these days. For example, the Container Shipping Index (Europe Route) Futures Main Contract at the Shanghai International Energy Exchange hit the daily upper limit on March 2 and 3 but then plunged the following day, with multiple individual stocks hitting the daily lower limit.Amir Heydari, deputy commander of Iran’s Khatam al-Anbiya Central Command, said on state television yesterday local time that Iran had not blocked the Strait of Hormuz, as the passing of ships continued according to international protocols. Upon the news, the Container Shipping Index (Europe Route) Futures Main Contract, which had surged over 17 percent during the day, plunged to close down over 3 percent.Given the escalation of the geopolitical situation, demand in the very large crude carrier market exceeded expectations, while supply underwent a rigid contraction, bringing about extremely strong growth in spot freight rates, according to the Industrial and Commercial Bank of China Credit Suisse Fund.The ban on navigation in the Strait of Hormuz may further push up VLCC freight rates in the short term, even though they have already reached high levels, per ICBCCS. Further attention is needed on changes in the Middle East situation.Editor: Futura Costaglione</div></div>

600026

002401

601872

601919

01919

01138

Cosco Shipping Lines has suspended new orders for routes to and from the Middle East due to local maritime restrictions amid escalating conflict. Other subsidiaries of China Cosco Shipping Corporation reported normal operations, with limited impact on their financials. Cosco Shipping Energy noted that the closure of the Strait of Hormuz affects global energy transport, but its financial data remains unaffected for now. Other companies, including China Merchants Energy Shipping, also reported normal operations but acknowledged safety risks in the Persian Gulf. The container shipping futures market has seen significant fluctuations due to the geopolitical situation.

Yicai

COSCO SHIPPING Energy

COSCO SHIP TECH

CMES

Cosco Ship Hold

COSCO SHIP HOLD

COSCO SHIP ENGY

Other Listed Cosco Shipping Units Downplay Impact of Middle East Crisis After Cosco Shipping Lines Halts Orders