Affected by the closure of the Strait of Hormuz and a new round of US sanctions, SeaLead Shipping's operations have been dealt a severe blow.

According to the latest report from Linerlytica, the company's operated fleet capacity has plummeted from a peak of 208,000 TEU in May 2025 to the current 14 vessels totaling 62,500 TEU—a contraction of over 70%.

The closure of the Strait of Hormuz has paralyzed multiple Far East-Middle East routes operated by SeaLead that rely on the Persian Gulf as their core hub. Earlier, the company stated in early March: "All transit shipments through the Strait of Hormuz have been suspended to ensure the safety of crew, vessels, and cargo." The company also noted it is evaluating contingency plans, including finding alternative discharge ports.

However, greater pressure stems from US sanctions and judicial pursuit. In July 2024, the US announced sanctions on vessels linked to Iran, forcing SeaLead Shipping to return 16 sanctioned chartered vessels to their owners last year. Over the past few months, the company has continued to redeliver more vessels, leading to a sharp decline in fleet size.

Linerlytica pointed out that three vessels currently operated by SeaLead Shipping have been sub-chartered to MSC, including the Suez Canal, Express Athens, and Express Rome. All three vessels are owned by Danaos Shipping.

Meanwhile, the US Department of Justice filed a lawsuit against SeaLead Shipping on March 6, accusing it of providing shipping services to interests controlled by senior Iranian officials and seeking civil forfeiture of $2.4 million in funds.

The US Department of Justice alleges that the funds involved were used to facilitate the sale and transportation of Iranian oil and other commodities, evading US sanctions by concealing the origin of the oil and the role of Iranian entities in the transactions. The $2.4 million was specifically earmarked for payment to SeaLead Shipping and "Sea Lead Shipping Agency India."

Notably, SeaLead Shipping had originally promoted former COO Cho Kit Wei to CEO this past February. According to sources familiar with the matter, in response to the impact of the Middle East conflict on its core business, the company has closed some overseas offices and implemented layoffs.