Business | Shipping
Shipping firm sets up group to deal with sanctions
Iranian company has been accused by the US of lying and aiding the country's defence ministry
- Reuters
- Published: 00:04 November 24, 2008
-
Freed Japanese vessel in Muscat
Freed Japanese vessel MV Stolt Valor in Muscat
-
Crew of freed Stolt Valor delighted
Freed captain of MV Stolt Valor delighted
-
Pirates off Somalia could drain Suez revenues
Pirates off Somalia could drain Suez revenues
-
Pirates beef up security around tanker
Pirates beef up security around hijacked oil tanker
-
Rampant piracy forces ships to re-route
Re-routing of ships to have 'repercussions' on trading
-
Piracy fight mired in complexities
Piracy fight mired in complexities
-
Militants take steps to attack pirates
Militants take steps to attack pirates
Tehran: Iran's biggest shipping firm is working on measures to deal with the impact of international sanctions, its managing director said in comments published on Sunday.
The UN Security Council and the United States have imposed sanctions over Iran's disputed nuclear programme, which the West says masks a covert bid to make atomic bombs. Tehran insists its work is purely civilian in nature.
"The shipping company is taking measures to confront the recent sanctions through the formation of a special working group," Hussain Dajmar, managing director of the Islamic Republic of Iran Shipping Lines (IRISL), said.
The United States slapped sanctions on IRISL in September, accusing it of lying about its activities and helping Iran's Defence Ministry, charges Tehran denies.
A UN resolution passed in March 2008 called for states to inspect cargoes to and from Iran shipped on vessels owned or operated by IRISL if they were believed to transport goods prohibited under earlier resolutions on the nuclear issue.
Letters of credit
"Because of the (financial) crises as well as sanctions, the opening of letters of credit is not taking place well and the transfer of cash is not happening correctly through the world's banking systems," Dajmar said. "That is why many shipping (companies) active in this field are withdrawing their ships from the transport arena."
US and UN sanctions have targeted big Iranian state banks, prompting many Western institutions in particular to reduce or cut operations with Iran.
This, say bankers, has pushed up the cost of opening letters of credit, a vital tool in international trade. Tehran has said it has enough of a financial cushion from windfall oil earnings to cope, but that was before oil prices tumbled.
Crude has fallen to around $50 (Dh183.5) a barrel from a record $147 in July, hurting Iran's main source of revenues.
Dajmar said shipping rates had fallen amid the financial crisis but added: "The drop in prices will be short-lived and I believe they will change again."
He said this period could offer a chance to remove old vessels from its fleet and add new ones.
"Now, there is the best opportunity to buy ships due to the drop in prices, but we have not taken any measure to buy and are busy examining newer ships," he said.
IRISL has also been affected by piracy. Two vessels operated by the company have been seized by Somali pirates in recent months. The ship taken this month is still being held.
Share this article
Related Articles
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
It costs a million to raise a child
Generation Z doesn't leave home at 18, but stay with the parents until mid-20s
-
Investing in funds doesn't come cheap
Many people are unaware of the effect of different expenses on their returns
-
Firm turns televised events into marketing dream
Drops anchor in Dubai to sell world's richest yachting races
