IRAN's total ton-miles exports reach a peak by May of this year in line with US President Trump's decision to halt the participation of the US in the Iran nuclear deal and to start re-imposing sanctions on Iran following a wind-down period.
This may suggest the market is anticipating significant deterioration ahead, which falls in line with the expiry of the 90-day grace period on August 6 and the looming November deadline to impose US sanctions on Iranian ports, shipping and energy sectors, as well as the provision of financial services, including insurance, reported the American Journal of Transportation.
The largest export volumes from Iran have consistently been going to China, yet a significant decline was seen in December 2017. However, Chinese imports have since rebounded and been stable in keeping with China's announcement that it will disregard US sanctions and continue doing business with Iran.
Greek owners still dominate exports, with 81 Greek tankers moving Iranian exports since the beginning of this year. Iranian owner NITC currently supplies the most tonnage for Iranian exports, yet this is expected to tail off after the last grace period ends in early November.
The draw of higher freight premiums for Iranian business appears to be quite attractive thus far, particularly in relation to more conventional voyages out of the Middle East. However, it remains to be seen how much risk appetite remains as the sanction regime picks up speed midway through the fourth quarter.
This may suggest the market is anticipating significant deterioration ahead, which falls in line with the expiry of the 90-day grace period on August 6 and the looming November deadline to impose US sanctions on Iranian ports, shipping and energy sectors, as well as the provision of financial services, including insurance, reported the American Journal of Transportation.
The largest export volumes from Iran have consistently been going to China, yet a significant decline was seen in December 2017. However, Chinese imports have since rebounded and been stable in keeping with China's announcement that it will disregard US sanctions and continue doing business with Iran.
Greek owners still dominate exports, with 81 Greek tankers moving Iranian exports since the beginning of this year. Iranian owner NITC currently supplies the most tonnage for Iranian exports, yet this is expected to tail off after the last grace period ends in early November.
The draw of higher freight premiums for Iranian business appears to be quite attractive thus far, particularly in relation to more conventional voyages out of the Middle East. However, it remains to be seen how much risk appetite remains as the sanction regime picks up speed midway through the fourth quarter.