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The US Department of Defense (DoD) has added China’s state-owned shipping giant COSCO, along with China State Shipbuilding Corporation and China Shipbuilding Trading Company, to a list of entities allegedly supporting Beijing’s military activities, according to media reports.

Unlike the Specially Designated Nationals list, a DOD blacklist carries no specific penalties. However, the department discouraged US firms from dealing with these companies, which would result in higher operational costs, compliance issues and reputational damage for the blacklisted entities. 

The development comes as the global maritime sector grapples with a series of disruptions, including the Red Sea corridor's instability and recurring port strikes in North America. Analysts warn that further scrutiny of Chinese maritime entities could exacerbate existing challenges, potentially driving up global shipping costs.

“Unless the US government explicitly prohibits dealings with COSCO, we anticipate limited immediate disruption. However, voluntary shifts in service choices by importers remain a possibility,” noted a logistics industry insider.

COSCO, the world's largest shipping company by fleet size, operates 1,417 vessels with a container capacity of 3.05 million TEUs, ranking fourth globally. In 2024 alone, COSCO transported 38.69 million TEUs to and from the US, predominantly from China, Vietnam, Thailand, and Malaysia.

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Written by: Derek Yong