The world’s top two container shipping groups Maersk Line and MSC are reviewing their Iran operations after the US withdrawal from the international nuclear agreement with Tehran.
The 2015 agreement, worked out by the United States, five other world powers and Iran, lifted sanctions on Tehran in exchange for limits to its nuclear program.
US President Donald Trump also instructed his administration to re-impose US sanctions after a winding down period.
“MSC is reviewing its services, operations and business relationships to understand if any are impacted and will comply with the timetable set out by the US government,” the private Swiss-headquartered group said in a statement on Friday.
MSC suspended services between 2012 and 2014 and when they were resumed the line used small, regional third-party feeder ships to carry cargo between Iran and MSC’s transshipment hub at Jebel Ali in the United Arab Emirates.
A shipping source said MSC had already stopped taking bookings for certain cargoes that would be impacted by the sanctions program.
The US Treasury said this week Washington was imposing sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished metals such as aluminum and steel, coal, and software for integrating industrial processes.
Denmark’s Maersk Line said separately it had ceased acceptance of the specific cargoes listed by the US Treasury this week.
“Our presence in Iran is limited. We will monitor the developments to assess any impact on our activities,” Maersk Line added.
The group also used feeder services to Iran from Jebel Ali.
Iran relies on seaborne trade for both imports as well as for sales of its goods apart from oil and the country had struggled with logistical difficulties before international sanctions were lifted in 2016.
Iran’s port operators and shipping sectors, including top cargo operator the Islamic Republic of Iran Shipping Lines (IRISL) and oil tanker group NITC, will once again be blacklisted on Nov. 4 by Washington.
The US will separately re-impose sanctions on the provision of insurance and reinsurance, which had been another challenge for Iran in the past.
Every ship requires various insurance cover to allow for journeys at sea.
“The decision is expected to have significant implications for maritime trade with Iran and the insurance of such trade,” said Nigel Carden, deputy chairman for Thomas Miller, the manager of ship insurer UK P&I Club.
Carden said a full assessment would only be possible once there was more clarity, and urged caution before entering into any new Iran related cargo bookings.
Lloyd’s of London said it was “currently reviewing the “implications for the Lloyd’s (insurance) market.”
Europe’s heavyweight economies took steps on Friday to safeguard their commercial and political interests in Iran.
Top container shipping lines reviewing Iran operations
Top container shipping lines reviewing Iran operations
- Maersk and MSC review Iran operations
- MSC already stops taking bookings for some cargoes
India seals $3bn LNG agreement with UAE
- Leaders hold talks to strengthen trade, defense ties
NEW DELHI, DUBAI: India signed a $3 billion deal on Monday to buy liquefied natural gas from the UAE, making it the Gulf country’s top customer, as the leaders of both countries held talks to strengthen trade and defense ties.
The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al-Nahyan for talks with Indian Prime Minister Narendra Modi.
They pledged to double bilateral trade to $200 billion in six years and form a strategic defense partnership.
Abu Dhabi state firm ADNOC Gas will supply 0.5 million tonnes of LNG a year to India’s Hindustan Petroleum Corp. for 10 years, the companies said.
ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said.
The UAE is India’s third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defense and foreign ministers. The two sides signed a letter of intent to work toward forming a strategic defense partnership, India’s Foreign Secretary Vikram Misri told reporters.
Misri, however, said that the signing of the letter of intent with the UAE does not mean that India will get involved in regional conflicts.
“Our involvement on the defense and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.
