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MSC calls at Bandar Abbas port as lifting of Iran sanctions in sight

WITH a deal to repeal sanctions in place, a Mediterranean Shipping Co (MSC) vessel has discharged 300 containers filled with food and agricultural commodities at Bandar Abbas port in Iran.

MSC plans to include Bandar Abbas in its 16-stop New Falcon service, which runs from China, through Singapore and Sri Lanka to Iran, visits the United Arab Emirates and India, and returns to China every 21 days.

"Iran is really only opening up, and as things progress, volumes should increase," said MSC spokeswoman Fiona Jackson in the Wall Street Journal. "It's baby steps."

Since the sanctions took hold, large carriers have delivered goods destined for Iran to nearby ports in Oman and the UAE, where smaller vessels picked them up for the final leg of the journey.

Carriers have little incentive to adjust their routes immediately, said Sea Intelligence Consulting CEO Lars Jensen, as he expects Iranian container growth to be slow.

Most shipments passing through the country's ports likely will be imports, according to Bimco analyst Peter Sand Bwtween 2011 and 2015, container traffic through Iran fell from five million TEU to 2.8 million TEU, he said.

"It's difficult to see containerised exports going from Iran to Europe beyond some perishable goods," Mr Sand said. "There's not a manufacturing industry in Iran capable of providing goods for Europe or the US."

Executives with AP Moeller Maersk visited Iran in recent days to discuss potential projects, a spokeswoman said. She added that any decisions regarding transportation would need to wait for the repeal of sanctions. Maersk Line hasn't had a significant presence in Iran for at least a decade.