CUS NEWS REPORT FOR WEEK 31 OF 2026

According to the Deputy Ministry of Shipping, the successful organisation of the seminar confirms Cyprus's active role in the Mediterranean and highlights the Deputy Ministry of Shipping's capacity to support regional training and capacity-building initiatives.

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In response, on the 30^th July 2026, Saudi Arabia announced the formation of a maritime defence alliance with 13 other countries, to address shared maritime threats and protect navigation through the Bab el-Mandeb strait, the Red Sea and Gulf of Aden.

On that date, Saudi Arabia hosted a meeting with representatives from 43 countries, out of which 14 issued a joint statement affirming their support for the Multinational Maritime Defense Alliance project, according Saudi Arabia's ministry of defence. The alliance is a defence initiative seeking to strengthen collective maritime security, protect international sea lanes, preserve freedom of navigation and global trade, and share responsibility in confronting common threats.

The 14 countries include Saudi Arabia, Kuwait, Bahrain, Qatar, Pakistan, Turkey, Egypt, Jordan, Yemen, Bangladesh, Nigeria, Sudan, Djibouti and Somalia.

Following Houthis’ declaration of a naval blockade, on 29 July 2026, Reuters reported that Yemen’s Houthi movement is considering the introduction of fees on commercial vessels transiting the southern Red Sea. Sources indicated that the objective of the reported measures would be to establish a practice of charging vessels for passage through international waters and to increase pressure on the United States and its partners. Any attempt to impose mandatory charges on international shipping is expected to face strong opposition from Gulf and European states, particularly as such measures could create additional legal, operational and financial challenges for vessels navigating the region. However, the ability of international naval forces to provide comprehensive protection for merchant shipping remains limited amid the wider regional escalation.

Chinese-linked vessels would reportedly be exempt from such fees, since Beijing has engaged with regional actors, including Houthis, to protect Chinese-linked shipping interests.

As tensions continue to affect both the Red Sea and the Strait of Hormuz, Gulf states have increasingly looked to China to use its economic and diplomatic influence with Iran to help restore stability and safeguard critical maritime routes.

China has maintained close economic ties with Gulf Cooperation Council (GCC) states and has previously played a diplomatic role in the region, including facilitating the 2023 Saudi Arabia–Iran rapprochement.

China has consistently called for diplomatic solutions, regional dialogue and the protection of freedom of navigation. China has no military mandate to secure Gulf maritime routes and has indicated that it does not intend to use force to address disruptions in the Strait of Hormuz or the Red Sea.

Meanwhile, traffic through the Strait of Hormuz remains subdued. Reuters reported that fewer than ten commodity vessels transited the Strait each day over the weekend of 25–26 July, despite the temporary pause in direct U.S.-Iran strikes, reflecting continued caution among ship operators. Further concerns emerged on 30 July, when a drone strike damaged two gas vessels at Egypt's Port of Damietta, near the Suez Canal. With no party claiming responsibility for the incident, the attack has raised additional concerns over the security of one of the region's most critical maritime trade routes.

Overall, these developments highlight the heightened risks to maritime trade,  potential new operational restrictions and the disruption to energy supply routes, prompting London's marine insurance market to expand its Red Sea high-risk area.

Related Articles:

Attachment 1: Reuters 28/07 - Houthis pushing to model Iran's Hormuz control in Red Sea, Yemeni FM says

Attachment 2: Reuters 27/07 - Red Sea shipping slows after Houthi attack on Saudi Arabia, data shows

Attachment 3: Reuters 30/07 - Drone strike at Egypt port near Suez Canal ignites new shipping risks

Attachment 4: Reuters 29/07 - Yemen's Houthis considering fees for ships sailing through Red Sea, sources say

Attachment 5: Reuters 30/07 - Can China restrain Iran? Gulf states test Beijing's influence
SAFETY4SEA 29/07 - China allegedly negotiates with the Houthis for safe Red Sea passage

Saudi Arabia unveils maritime defence alliance | Latest Market News

Saudi Arabia, 13 other nations agree to maritime defence alliance amid Houthi Red Sea attacks - The Times of India

Saudi sets up maritime defence alliance to secure Red Sea | The Straits Times

On 30 July, Russia announced that its forces had conducted large-scale overnight strikes and claimed to have struck three cargo vessels operating in the Black Sea. On the same day, Ukrainian drones targeted a facility at the Russian port of Taman, according to sources cited by Reuters. As Russian exporters have redirected grain shipments from the Sea of Azov to deep-water Black Sea terminals by road and rail, the increasing frequency of attacks on Black Sea ports indicates that the security risks to maritime trade are continuing to grow. Consequently, vessels operating in or transiting the Black Sea should maintain a heightened level of vigilance, as the deteriorating security environment continues to pose an elevated risk to commercial shipping.

Reflecting the heightened security concerns in the region, the Government of India has also issued a security advisory for Indian nationals seeking employment on commercial vessels operating in or transiting the Black Sea. The advisory urges prospective seafarers to carefully assess the risks before accepting employment in the region and, where they choose to proceed, to ensure they are fully informed about the vessel's intended route, security arrangements, insurance coverage and emergency response procedures. It further emphasises that employment contracts should comply with international maritime standards and include adequate provisions for medical care, evacuation, repatriation and compensation, underscoring the seriousness of the security situation facing commercial shipping in the Black Sea.

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Attachment 6: Reuters 30/07 - Ukrainian drones damage Russian grain export terminal on Kerch Strait, source says

Attachment 7: Reuters 30/07 - Kazakhstan's oil export gateway shut again by Ukrainian drone attacks in Black Sea

SAFETY4SEA 27/07 - India warns of increased danger for seafarers working in Black Sea region

On 29 July, BIMCO published a position paper welcoming the Commission's proposal, describing it as an important step towards broader international recognition of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention). At the same time, BIMCO stressed that the inclusion of the two Indian facilities should be regarded as only a first step towards wider global acceptance of the Convention.

BIMCO also highlighted several broader concerns regarding the EU Ship Recycling Regulation. It questioned whether the EU's regional and unilateral approach provides sufficient certainty to build confidence, attract long-term investment and support continuous improvement in the ship recycling sector. According to BIMCO, the Regulation continues to provide limited legal clarity on the criteria and process for adding or removing non-EU facilities from the EU List, with many decisions still relying on non-binding guidance. In contrast, EU-based recycling facilities are not subject to the same level of external assessment. While welcoming the additional recycling capacity that the two Indian yards would provide, BIMCO noted that substantially more approved recycling capacity will be required to meet future market demand.

On 23 July, European Shipowners (ECSA) also welcomed the European Commission's proposal, reaffirming its long-standing support for the inclusion of compliant Indian ship recycling facilities on the EU List since the EU Ship Recycling Regulation entered into force. The association stated that the proposal sends a strong political signal that ship recycling facilities located outside the OECD can, and should, be recognised when they meet the Regulation's environmental and safety requirements.

The proposal will now proceed through the EU approval process, including scrutiny by the Member States and the European Parliament. While the European Commission's technical assessment supports the inclusion of the two Indian facilities, differing political views on the interpretation and application of the EU Ship Recycling Regulation could influence the final outcome. In the meantime, the Commission has opened the draft delegated act for public feedback, with stakeholders invited to submit comments between 22 July and 30 August 2026 (midnight Brussels time), before a final decision is taken.

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BIMCO 29/07 - BIMCO welcomes proposal to include Indian ship recycling yards on EU list

ECSA 23/07 - Ship Recycling: European Shipowners strongly welcome inclusion of two Indian yards on the European List

SAFETY4SEA 27/07 - EU proposes first Indian ship recycling yards for inclusion on approved list

Opening the session, IMO Secretary-General Arsenio Dominguez strongly condemned the recent attacks on commercial shipping in the Red Sea and once again emphasised that the safety and welfare of seafarers must remain the industry's foremost priority. He urged ship operators to undertake thorough risk assessments before transiting the region and renewed his call for the immediate and unconditional release of all seafarers who remain held captive following piracy attacks in the Red Sea and Gulf of Aden. The IMO also expressed concern over the growing environmental risks arising from attacks on commercial vessels in the Red Sea and previous incidents in the Strait of Hormuz, confirming that it will continue to monitor developments closely and provide assistance where necessary.

Alongside discussions on maritime security, the IMO Sub-Committee on Implementation of IMO Instruments (III 12) progressed several important regulatory initiatives:

• Port State Control (PSC)

The Sub-Committee advanced draft amendments to the 2025 Procedures for Port State Control (Resolution A.1206(34)), with the revised 2027 edition expected to enter into force on 1 January 2028. The proposed amendments include:

• New guidance for machinery, electrical equipment and maintenance inspections.
• Revised qualification requirements for Port State Control Officers (PSCOs).
• A new entrant training manual to promote greater consistency in PSC inspections.

• Harmonized Survey Guidelines (HSSC)

The Sub-Committee also progressed amendments to the 2025 Survey Guidelines under the Harmonized System of Survey and Certification (HSSC) (Resolution A.1207(34)), which will also be expected to enter into force on 1 January 2028. The proposed changes include:

• Updates reflecting recently adopted IMO requirements.
• New provisions for pilot transfer arrangements and remote surveys.

• Transfer of Ships Between Flag States

The Sub-Committee finalised draft amendments to MSC/Circ.1140–MEPC/Circ.424, introducing a notification mechanism for ships deregistered before obtaining a new flag State. The amendments are expected to be considered for approval by MSC 112 and MEPC 85 later in 2026.

Related Articles:

IMO 23/07 - Statement on recent attacks on ships in the Red Sea

SAFETY4SEA 27/07 - IMO III 12: Key outcomes

SAFETY4SEA 27/07 - IMO condemns the resurgence of security incidents in the Red Sea

SAFETY4SEA 28/07 - IMO advances harmonized PSC inspections and officer training

The list of the sanctioned persons can be found in Annex 1 of Council Implementing Regulation (EU) 2026/1895 of 30 July 2026 implementing Regulation (EU) 2020/1998 concerning restrictive measures against serious human rights violations and abuses.

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Scam centres in Southeast Asia: EU lists seven persons and three entities responsible for serious human rights violations - Consilium

Implementing regulation - EU - 2026/1895 - EN - EUR-Lex

EU Announces New Sanctions Targeting Southeast Asia-Based Online Scam Networks – The Diplomat

A spokesperson for the Chinese mission to the European Union said Beijing expressed "strong dissatisfaction and firm opposition" to the sanctions. "China upholds an objective and just position on the Ukraine crisis, remains committed to promoting peace talks, and has played a constructive role in advancing a political settlement of the crisis," the spokesperson said.

China urged the EU to "immediately correct its wrongdoing, eliminate the egregious impact, and safeguard the overall interests of China-EU relations with concrete actions."

Furthermore, on the 24^th July 2026 China's Ministry of Commerce placed 14 EU entities on its export control list, prohibiting exports of dual-use items and calling the measure a response to sanctions recently imposed by the EU. The European companies affected include Czech vehicle manufacturer Tatra Trucks, Italian electric motor maker Lafert SpA, German manufacturer Sindlhauser Materials GmbH and French drone manufacturer Cavok UAS.

A notice from China's Ministry of Commerce said the named companies are barred with immediate effect from receiving dual-use goods from Chinese suppliers.

The ministry said overseas parties are also banned from transferring or passing on Chinese-origin dual-use items to those companies, and any such activity already under way must stop at once.

It said exporters seeking an exemption because of special circumstances must apply to the ministry for approval.

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China protests EU sanctions on Chinese firms over Russia

China restricts exports to 14 European firms amid EU sanctions row

What China's swift response to the EU's sanctions signals - CGTN

EU-China trade war: Beijing turns the screws as Brussels tests limits of restraint | South China Morning Post

China slaps export controls on 14 EU entities in retaliation for Russia-related sanctions - The Washington Post

According to Filipe Gouveia, Shipping Analysis Manager at BIMCO, “the arrival of El Niño is expected to boost dry bulk ship demand during the next twelve months. The Panama Canal may experience growing restrictions to ship transits, leading bulkers to seek alternative routes and thus lengthening sailing distances. The weather phenomenon is also leading to a weaker monsoon in India, which could limit electricity generation from hydroelectric power and thus support coal import demand”.

Related Article:

BIMCO: Arrival of El Niño is expected to boost dry bulk ship demand - SAFETY4SEA