Major Shipping Companies Avoid Iran Amid Tightening Sanctions
Shipping oil from Iran to Europe is becoming increasingly difficult Shipping oil from Iran to Europe is becoming increasingly difficult, despite the fact that a full oil embargo does not come into effect until July 1, as increasingly tight sanctions from the U.S. and European Union are causing major shipping companies to avoid business with the country.Shipping giants AP Moller Maersk A/S (AMKBY), Frontline Ltd. (FRO) and Teekay Tankers Ltd. (TNK) have all said their ships will no longer call at Iranian ports, while some smaller shipowners have also said they are unwilling to send their vessels to the Islamic Republic to lift crude."We have stopped having our ships call at Iran," said Jens Martin Jensen, Chief Executive of Frontline Management AS, a subsidiary of Frontline responsible for overseeing the companies commercial affairs."We are just following the sanctions, we have no interest in doing business with Iran," he added.The EU imposed new sanctions on Iran on Jan. 23, ratcheting up pressure on the Islamic Republic, although a full ban on oil exports from the country will not come into affect until July 1.Still, for many shipowners the new sanctions are already becoming too onerous, pushing up insurance premiums and requiring ...
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