The Affects of Iran Sanctions on the Shipping Industry

When a country like the United States decides to impose sanctions on another country, it can start a domino effect across industries in that region of the world. In the case of Iran, ever since the U.S. started its sanctions, the Iranian economy has been on the decline and the shipping industry is a major part of that. Not only have the sanctions increased inflation and the cost of goods but they have also hurt the export trade as well as preventing foreign investments which sets Iran further into a downward spiral. Then when major players in the shipping industry like Maersk decide to pull their business out of the ports, it triggers a myriad of additional problems not the least of which is raising the cost of shipping. This, in turn, raises the price of goods for import/export dealers. Specifically in the case of Iran, the U.S. has primarily sanctioned the sale of gasoline so many suppliers have stopped their exports to Iran. As a result Iranian companies can no longer import large quantities of petroleum products which can put extreme pressure on the economy as well as the political system. Inflation, costs of goods, and falling investments have all caused the shipping industry to further turn its back on the sanctioned Iran. As much as they have trying to keep industry moving in the right direction, it is clear that the sanctions have affected the shipping industry and supply chain all throughout the region.