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COSCO
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COSCO

Chinese state-owned Marine transport and logistics conglomerate, supervised by SASAC.

Hiring a supertanker from Ras Tanura to Ningbo passed $1.2 million a day in The Week to 25 September 2026, a record. For COSCO's tanker Arm, freight now bites harder than any American designation.

Last refreshed: 1 October 2026 · Appears in 1 active topic

Key Question

How much Iranian oil is China absorbing through COSCO-linked tankers under US sanctions?

Timeline for COSCO

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Background

China COSCO Shipping Corporation, branded COSCO Shipping, is a Chinese state-owned Marine transport and logistics conglomerate, headquartered in Shanghai. The State Council approved its creation in January 2016, merging China Ocean Shipping Company, founded in 1961, with China Shipping Group, founded in 1997. The State Council owns it and the State-owned Assets Supervision and Administration Commission supervises it, so its commercial decisions sit close to state policy.

The group runs container, dry bulk, tanker, terminal and logistics arms. Iranian oil sanctions reach the tanker Arm rather than the container business. The United States designated COSCO Shipping Tanker (Dalian) in September 2019 under Executive Order 13846 for carrying Iranian crude to China, and the fifty per cent rule pulled affiliates and dozens of vessels in with it. The Treasury delisted that company in January 2020, while a related Dalian ship-management entity stayed listed.

That episode set the pattern. Beijing does not enforce American secondary sanctions, so Chinese buyers and Chinese-operated hulls remain the outlet for Iranian crude, and designations fall instead on the routing networks around the trade. A reader following Iranian oil revenue is following the fleets that carry it, and this is the largest of them under state control.

Key Issues
Tanker freight

Freight has overtaken sanctions as the constraint

The rate for a Very Large Crude Carrier from Ras Tanura to Ningbo, The Gulf-to-China run that COSCO's tanker Arm exists to serve, passed $1.2 million a day in The Week to 25 September 2026. It had risen 43% in fifteen days, while Brent November futures fell from $107.35 a barrel on 28 September to $97.68 two days later.

War-risk cover sits underneath that figure. Lloyd's of London left its Strait of Hormuz designation unchanged on 26 May 2026, holding the extra premium on a Hormuz voyage at $10m to $14m. Cover is charged per voyage as a percentage of hull value, so a state fleet of this size pays the war premium on every laden transit. The economics of The Gulf trade now turn on hull and hire rather than on the sanctions list.

Common Questions
Is COSCO shipping Iranian oil despite sanctions?
COSCO-affiliated tankers are among the principal carriers of Iranian crude to Chinese buyers, estimated at 1-1.4 million Barrels Per Day. The US has repeatedly sanctioned intermediary companies in COSCO's logistics chain rather than COSCO directly.Source: OFAC; analyst estimates
What is COSCO Shipping Corporation?
COSCO is the world's largest state-owned shipping conglomerate, headquartered in Shanghai. It was formed in 2016 from the merger of China Ocean Shipping Company and China Shipping Group, operating over 1,300 vessels globally.
How does Iran sell oil to China if it is sanctioned?
Sanctioned Iranian crude reaches China via a network of Shell companies in Hong Kong, the UAE, and Oman that serve as intermediaries, moving cargoes through COSCO-affiliated and other tanker operators. OFAC designated twelve of these individuals and entities on 15 May 2026.Source: OFAC
Who owns COSCO?
The Chinese state. China COSCO Shipping Corporation is owned by the State Council and supervised by the State-owned Assets Supervision and Administration Commission.Source: https://en.wikipedia.org/wiki/COSCO_Shipping
Has COSCO been sanctioned over Iranian oil?
Yes, in part. The United States designated COSCO Shipping Tanker (Dalian) in September 2019 for carrying Iranian crude to China, then delisted it in January 2020. A related Dalian ship management entity remained designated.Source: https://www.steptoe.com/en/news-publications/international-compliance-blog/ofac-removes-secondary-sanctions-on-cosco-division-targeted-for-iran-oil-imports.html
When was COSCO Shipping formed?
In January 2016, when China's State Council approved the merger of China Ocean Shipping Company and China Shipping Group. The combined group is headquartered in Shanghai.Source: https://en.wikipedia.org/wiki/COSCO_Shipping
Why does China keep buying Iranian oil?
Beijing does not enforce United States secondary sanctions, so Chinese buyers and Chinese-operated tankers remain the main outlet for Iranian crude.
Source Material
OFAC removes secondary sanctions on COSCO division targeted for Iran oil importsCOSCO ShippingOFAC SDN ListChina COSCO Shipping Corporation — Official Website