US Blacklisting of COSCO Raises Concerns, But Piraeus Port Operations Unaffected So Far

Despite the U.S. Defense Department adding its bulk owner, COSCO Shipping, to a database of companies allegedly moving with the Chinese military, operations astatine Greece's largest port, Piraeus, are continuing arsenic normal, sources told Reuters connected Friday.

The Greek authorities is presently assessing the imaginable interaction of the U.S. action.

The U.S. move, announced connected Monday, is seen by the shipping manufacture arsenic an effort to discourage U.S. businesses from trading with the Chinese shipping giant. COSCO, 1 of the world's largest shipping groups, responded connected Wednesday, stating that nary of its listed units are subject companies, that its planetary operations stay unaffected, and that it intends to clarify the substance with U.S. authorities.

While the U.S. blacklisting doesn't represent a ceremonial ineligible authorisation for commercialized entities, it has raised concerns successful Greece. Piraeus, a large Mediterranean port, has already experienced a diminution successful commercialized owed to the Red Sea situation involving attacks connected commercialized shipping by Yemen's Houthis.

"I don't spot an interaction connected Piraeus, but it is inactive early," a Greek authoritative acquainted with the concern told Reuters. A 2nd Greek authoritative confirmed that the authorities is monitoring the concern and has discussed the contented with different EU subordinate states, noting that a COSCO subsidiary besides operates terminals successful Spain and Italy.

Analysts suggest the imaginable for "self-sanctioning" by marketplace participants who whitethorn beryllium wary of conflicting with U.S. policy. Ulf Bergman, a elder economist with freight level Shipfix, noted that adjacent without ineligible sanctions, the blacklisting could deter galore importers. One anonymous Greek shipowner characterized the concern arsenic portion of a broader powerfulness conflict betwixt China and the U.S. alternatively than a cardinal displacement successful the shipping industry. Danish shipping radical NORDEN reported to Reuters that the ruling has not yet affected its business.