Reduced service by Iran’s shipping line affects Freeport

Trade routes served by the Islamic Republic of Iran Shipping Lines (IRISL) through Malta Freeport have been affected as a result of the shipping line no longer calling at North European ports, Ernest Sullivan, the chairman of the Association of Ship Agents told The Times Business.

Mr Sullivan said that while the new European Union sanctions against IRISL only affect new contracts “the trade routes served by HDS (the name IRISL uses to operate at the Freeport) through Malta Freeport have been significantly impacted since mainline services are no longer calling at North European ports.”

He said it wasn’t yet clear whether the decision by IRISL not to call at ports in countries such as Holland or Germany was linked to the EU sanctions.

Mr Sullivan added: “The impact on Malta Freeport’s operational aspect is of concern. However, with the appropriate strategy it is believed that substitute candidates can be identified to fill in the eventual gap.

“The handling of cargo for domestic trade needs to be identified and directed to use alternative and existing logistics possibilities. A major concern can perhaps arise when handling export cargo which might have been enjoying competitive freight rates.”

European Union foreign ministers recently agreed to ban all cargo handling by Islamic Republic of Iran Shipping Lines in EU territory as part of a new round of sanctions legislation in response to Teheran’s nuclear programme.

The ban is expected to affect the Malta Freeport where IRISL traffic accounts for between five and 10 per cent of the Freeport’s turnover of trans-shipment cargo. Iran’s shipping line also provides important links for domestic (local Maltese market) imports and exports to and from South East Asia, the Middle East and a number of Mediterranean ports

Foreign Minister Tonio Borg had told The Times that the EU Council of Ministers had decided to go for the ban as a result of the United Nations sanctions against Iran imposed last June.

“The European Union Council of Ministers unanimously approved the UN Implementing Protocol of the sanctions against Iran. Some of these sanctions are targeted at IRISIL, the Iranian shipping line, which has been identified by the United Nations as having breached UN sanctions on a number of occasions, so much so that the UN imposed a freeze on its financial assets and economic resources.

“The Council of Ministers interpreted this freeze as one that also includes all cargo handling by IRISIL. The Council expressly excluded all existing contracts with IRISIL from these sanctions, until the date they expire,” Dr Borg said.