Headline Industry Data:

Key Industry Trends:

Tankers operating between Iran and Japan, South Korea and India will be the most affected as vessel insurance dries up and these countries look to comply with the spirit of the Western sanctions. Although China is the largest importer of Iranian crude, it seems likely that the Chinese government will ensure that imports continue unabated.

Shahid Rajaee Port In Second Expansion Phase

Iran's Port and Marine Organisation (PMO) for the Hormuzgan province expects to complete the second phase of expansion at the Shahid Rajaee port by March 2013 it was reported in April. Nearly 1.1mn cubic metres have been dredged at the port, which is 1,500 kilometres from Tehran. The PMO hopes to complete the dredging by June 2012 and begin work on a new 1,100 metre-long jetty. Capacity is expected to double from 3mn twenty-foot equivalent units (TEUs) to 6mn.

Iran and Iraq To Establish Joint Shipping Firm

A spokesperson from Iran's Ports and Maritime Organisation confirmed in February that the governments of Iran and Iraq have approved a plan to establish a joint shipping line. No further details have been released about the project, although it is expected that the new company will be created by a group of private companies. The move is part of effort to expand trade between the two countries.

Key Risks To Outlook:

The sanctions imposed on Iran provide considerable risk to our forecasts. With the nuclear energy development programme - which the Iranians insist is not related to the development of weapons - elevated to the status of a national cause, it seems unlikely that it will be dropped anytime soon. However, it is uncertain how much longer Iran can continue in the current manner given the dire economic outlook, and were a reversal to be made, and sanctions lifted, this could cause risk to our economic and port throughput forecasts.