South Korea shippers join overseas rivals in shunning Iran business
South Korean container shippers are joining a wave of their
international peers in giving up on Iranian business ahead of new
U.S. sanctions in July, adding to pressure on Tehran's vital
seaborne trade, Reuters reported.
South Korea's government said the country's top two shippers,
Hanjin Shipping Co Ltd and Hyundai Merchant Marine Co Ltd, had
ended direct shipments to Iran in May, with the Middle Eastern
nation's economy already reeling from measures imposed by the West
to curb its nuclear programme.
Hyundai Merchant will also cease so-called trans-shipments of
freight ultimately destined for or originating in Iran from June
15, while Hanjin halted such business on June 8, the marine,
energy, finance and foreign affairs ministries said in a joint
statement on Tuesday.
Hanjin and Hyundai Marine, the only two South Korean shippers that
had been dealing with Iran, both confirmed the government
statement, saying they were cooperating in efforts against Iran's
nuclear programme.
Tehran denies its atomic programme is aimed at building a bomb, but
sceptical Western nations have become increasingly frustrated.
The U.S. National Defense Authorization Act (NDAA), which comes
into effect on July 1, blacklists Iran's shipping, shipbuilding,
energy and port management sectors.
While it has an explicit exemption for food, medicine and other
humanitarian goods, foreign shipping firms are pulling out to avoid
falling foul of its provisions.
The Korean ministries said exports to Iran, which mainly come from
small- and medium-sized firms, would drop sharply from July as it
gets harder to find ships.
The ministries did not give details on the size of the expected
fall, but said that South Korea exported $6.26 billion of goods to
Iran last year - mainly steel products, car parts and electronic
goods.
Asia's fourth-largest economy, a major buyer of Iranian crude oil,
last week received a six-month extended waiver on Iran sanctions
from the U.S. State Department in exchange for agreeing to reduce
purchases of oil from Tehran.
South Korean refiners have been importing Iranian crude via ships
provided by Iran.
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