Maersk suspends some Iran operations over sanctions

The world's largest container firm suspended operations at several Iranian ports on Thursday, potentially disrupting critical food shipments as it complies with tightening US sanctions. Maersk line, a unit of A.P. Moller-Maersk, manages several refrigerated ships and container vessels that transport food to the country, including wheat, rice and bananas from Asia.
Shipments could be delayed for weeks as Maersk adjusts its operations in the Middle East, analysts said. "We are not sure how they are going to sort this out as it could disrupt food supply to Iran, especially ahead of the Ramadan festival," said Ker Chung Yang, an agricultural commodities analyst at Phillip Futures in Singapore.
The United States last week blacklisted Tidewater Middle East Co and prohibited US entities from any transactions with the major Iranian port operator, which manages over 90 percent of the country's container operations. "Maersk Line is committed to complying with all relevant foreign trade controls and sanctions programmes," said Morten Engelstoft, chief operating officer for Maersk Line in a statement on Thursday.
Engelstoft declined to specify how much cargo would be affected by the closure of its operations, but did say it would not impact the company's quarterly earnings in "any material way." Maersk operates in other Iranian ports and could also divert shipments to Dubai, partnering with other companies that are not bound by US sanctions aimed at curtailing Iran's alleged nuclear weapons programme.
The sanctions are expected to force other shippers with business in the United States to avoid Bandar Abbas and other port facilities managed by Tidewater Middle East, which Washington suspects is run by the Revolutionary Guards. Hong Kong-based Orient Overseas Container Line last week suspended its direct voyages to Bandar Abbas, saying it was due to commercial reasons and not because of US sanctions. South Korea's Hanjin Shipping and privately owned Switzerland-based Mediterranean Shipping Company (MSC), the world's second largest container firm, said their Iranian operations were not immediately affected by the sanctions.