WSJ: Iran’s bid to bypass Hormuz blockade by land runs into border and cost bottlenecks
Euro Times – Iran is running into mounting difficulties as it tries to compensate for disrupted maritime trade through the Strait of Hormuz by shifting more cargo overland, with border congestion, customs procedures, high transport costs and weak infrastructure constraining the strategy, according to a new Wall Street Journal report.
The newspaper reported that Iranian trucks are stranded at crossings with Pakistan, Turkey, Afghanistan and Turkmenistan, delaying shipments of food, minerals, fuel and other goods. In some cases, long waits have caused perishable cargo to spoil.
The bottlenecks underscore the limits of replacing maritime shipping with road transport. Figures cited by the Journal put the cost of moving a container from China to Iran by land at about $12,000, compared with roughly $3,000 by sea. The Iran-China Chamber of Commerce estimates that the disruption could add around $18 billion a year to Iran’s logistics costs.
Iranian transport data cited in the report indicate that around 3,700 trucks are stranded on the Iranian side of the Turkish border, with some drivers waiting for as long as about 20 days.
Tehran is also trying to expand alternative routes, including more cargo through the Caspian Sea, rail links and trade with China and Russia. Those channels have so far been unable to replace the scale of commerce that previously relied on seaports.
The disruption comes as Iranian shipping faces severe pressure from the war, the US maritime blockade, sanctions and attacks on Iran-linked tankers. The Journal said around 70% of Iran’s imports normally arrive through ports that have been heavily affected by the current disruption.
The transport crisis is adding another layer of pressure to Iran’s economy and domestic prices as higher freight costs and delayed imports feed through to consumers. The figures on congestion and costs are estimates from transport and trade bodies cited by the newspaper.
Source: The Wall Street Journal.
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