China orders fleet to report Hormuz voyages amid protection speculation

CHINA has ordered its merchant fleet to start reporting transits and voyages through the Strait of Hormuz to its shipowners association, sparking speculation that Beijing could be considering contingencies to protect vessels critical to its energy supply.

The unprecedented move comes after the US bombed three key Iranian nuclear sites over the weekend, heightening tensions and direct threats to shipping through the narrow chokepoint which handles a significant chunk of global seaborne oil and gas trade.

In a statement on Monday, the China Shipowners’ Association (CSOA) has asked its members to immediately start submitting daily reports on their ship movements through Oman Gulf, Strait of Hormuz and the Middle East Gulf.

The submissions to CSOA cover all types of vessels, including oil tankers, gas carriers, bulk carriers, and containerships.

The reports must contain details such as company name, vessel identity, flag state, cargo specifics, original port and destination, as well as the number of trips through the strait. Historical sailing data encompassing all of 2024 and January to May 2025 has also been requested, in addition to current transits.

The CSOA said the move was “in line with requirements from national competent authorities”, and that having this information is “vital for safeguarding national interests”.

Around 15m barrels per day of crude oil and 2.5m bpd of products transit through the Strait of Hormuz, as well as around 20% of the world’s liquefied natural gas and a third of global liquefied petroleum gas.

Unlike the Red Sea and Suez Canal that face disruptions from Houthi interference, alternative routes are not readily available for ships to detour around.

China is expected to be among those most affected by a potential blockade, given its heavy dependence on Middle Eastern energy. The world’s second- largest economy sourced more than 40% of its crude oil imports from the region in 2024, led by Saudi Arabia, and is also viewed the top buyer of discounted Iranian oil under US sanctions.

After the recent flare up in conflict with Israel, Tehran officials had threatened to close off the strait. The US air strikes prompted Iran’s parliament to endorse a measure for such a move again, although ultimate decision-making power lies with Ayatollah Ali Khamenei and the Supreme National Security Council led by him.

“I wonder if the reporting to shipowners’ association might serve as a white list for Iran to ensure the safety of these ships,” said SWS Research shipping analyst Yan Hai. “While it is possible to detour around the Red Sea, the Strait of Hormuz is simply too important for China.”

A senior executive from a Chinese state-owned shipping company echoed the view. “My feeling is Chinese ships will enter [the gulf] even if knives drop, he said, adding they may be afforded similar treatment as in the Red Sea if another crisis occurs.

CSOA has been approached for comment.

Iran-backed Houthis, who started attacking merchant vessels transiting the Bab el Mandeb Strait since late 2023, had stated publicly they allow passage of Chinese ships, which have barely been targeted.

The rebels said they will resume assaults on US vessels in the Red Sea shortly after US President Donald Trump announced the American air strikes on Iran, despite an earlier agreed ceasefire between both sides.

Some tanker owners including Frontline are already refusing new contracts to sail into the gulf through the Strait of Hormuz. Vortexa data on Wednesday showed ballast very large crude carriers entering the gulf via Hormuz have dropped 40% since the Israel- Iran conflict compared to the 1.5 month average.

Yet plenty of skepticism exists over whether Iran can effectively enforce a closure of Hormuz.

Apart from doubts over specific capabilities, such a move is also seen antagonising other large nations in the Middle East and Europe, further isolating Iran, as well as economically disastrous for Tehran itself as a large share of its revenue depends on energy exports.

“The world simply cannot allow a sustained closure. By bringing key powers into the war, Iran would lose big for no gain,” said Fereidun Fesharaki, chairman of London-headquartered energy consultancy FGE in a commentary.

Pareto Shipbrokers said: “Most pundits would not expect them to be able to go through with such a move, and potential cargo seizing or simpler drone attacks would be more likely.

“lf that’s the case, we could see military convoys through the strait, which would increase fleet inefficiencies and boost tonnage demand.”

US Secretary of State Marco Rubio, in an interview with Fox News on Sunday, urged Beijing to persuade Iran not to attempt such an action, noting that China relies heavily on this waterway for its oil supply.

Rubio stated that closing the strait would be “economic suicide” for Iran.

“And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries’ economies a lot worse than ours,” he added.

Lloyd's List Daily Briefing 24 June 2025

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