The troubled ocean carrier is ceasing service to Iran over concerns of rising tensions there rather than as a cost cutting measure, according to an executive with the company, Reuters said.
Troubled Taiwanese ocean carrier Yang Ming Marine Transport is halting its container service to Iran, according to multiple media reports.
Several larger shipping lines began calling Iran after sanctions were lifted a year ago, and Yang Ming is the first foreign shipping line to abandon the route after the lifting of sanctions, according to a company source, Reuters reported.
According to Reuters, a Yang Ming executive said the firm had “ceased direct services to Iran on concerns of rising tensions there. We took into consideration the recent sanctions against Iran as well as the current geopolitical tensions in the region and what’s been going on between Iran, the U.S. and Europe.”
Yang Ming has been calling Iran just once a week, Reuters said.
According to ocean carrier schedule and capacity database BlueWater Reporting, Yang Ming has been calling Bandar Abbas on its CGX loop between Asia and the Middle East. Yang Ming’s latest online service schedules show the loop’s last call to the Iranian port will be with the May 16 arrival of the YM Bamboo.
Last month, Yang Ming suspended its shares on the Taiwan Stock exchange from April 20 until May 4 as part of its financial restructuring and reverse stock split. The carrier reported a loss of 14.91 billion Taiwan new dollars (U.S. $492.1 million) for the full year in 2016.
The Yang Ming executive said the carrier has also adjusted some of its routes in Asia as a result of the downturn, but that ending service to Iran was primarily fueled by geopolitical issues and was not a cost-cutting decision.
YM halts service to Iran
