Shargh daily reports that German shipping company, Hapag-Lloyd intends to increase shipping cost to Persian Gulf. The shipping cost of each TEU (20 ft. container) from the Far East to the Persian Gulf is estimated to rise by 300 dollars.
The US sanctions are expected to severely limit the activity of the Islamic Republic of Iran Shipping Company which handles 40% to 50% of Iran’s transportation of goods.
Furthermore, the price hike of foreign shipping companies will increase pressures on Iran. The profitability of the US market has led international shipping companies such as Maersk and MSC to abandon the Iranian market in favor of the US.
“Second and third-rate companies will now exclusively take over the transport of goods to the Persian Gulf”, says the head of Iran Transportation Federation, Masoud Daneshmand. “So long as Iran is desperate for shipping, they will continue to raise prices. The best solution is to seek alternate shipping companies”.
The increase in the cost of shipping and exclusivity are sure to increase the price of goods. It remains to be seen that with the advent of the second round of sanctions, what policies will be adopted by IRI Shipping Company and Iran Port Authority in order to provide essential goods to Iran.
Since under the US sanctions, private shipping companies and other countries are not banned from the Iranian ports; it remains to be seen if small and medium sized companies can break the exclusivity or not.