China urges protection of vessels in Strait of Hormuz as shipping costs surge
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China has called on all sides to protect vessels transiting the Strait of Hormuz amid escalating conflict involving Iran, as maritime traffic plunged and shipping costs soared.
Beijing’s foreign ministry urged “all parties to immediately cease military operations, avoid escalating tensions, and safeguard the safety of navigation in the Strait of Hormuz” after the waterway was effectively closed following US and Israeli missile strikes on Iran and Tehran’s retaliation.
The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman along Iran’s southern border, carries around 20 per cent of global seaborne crude oil and about 20 per cent of seaborne gas tankers, along with one third of widely used fertiliser shipments. China, the world’s largest importer of oil and fossil gas, is among the countries most exposed to the disruption.
According to marine intelligence firm Windward, only seven vessels crossed the strait on March 2, a 60 per cent drop from the previous day and far below the daily average of 79 ships. At least 150 tankers dropped anchor in the Gulf over the weekend, representing 4 per cent of the global fleet by tonnage, data from the International Chamber of Shipping showed.
Freight rates have surged, with the cost of chartering a very large crude carrier from the Middle East to China rising above 424,000 dollars per day, about four times recent levels.
Major producers, including Qatar and Saudi Arabia, have shut facilities, while leading shipping companies such as Maersk, Hapag-Lloyd, and CMA CGM have rerouted or suspended services in the region.
