WANA (Apr 29) – The accumulation of containers in Iran’s ports occurs for a variety of reasons, stemming from a combination of internal, external, economic, political, and infrastructural factors. Below are the main causes of this issue, along with a comparison to the situation in other parts of the world:

 

Reasons for Container Accumulation in Iran’s Ports

1. Customs issues and complex administrative procedures, sometimes coupled with corruption:

• The process of clearing goods in Iran is prolonged due to complicated bureaucracy, the requirement for multiple approvals from various entities (such as Customs, banks, the Standards Organization, etc.), and lengthy administrative cycles.

 

• Pre-declaration requirements, such as order registration and obtaining a tracking code, are often delayed, leading to the buildup of containers in ports.

 

2. Banking and Currency Issues:

• International sanctions, restrictions on currency transfers, and delays in the allocation of foreign currency for payments to foreign suppliers prevent the handover of shipping documents and the clearance of goods.

 

• The inability of foreign suppliers to receive payments due to banking issues results in containers getting stuck at ports.

 

3. Sanctions and International Restrictions:

• Sanctions have reduced access to international shipping lines, and the Islamic Republic of Iran Shipping Lines (IRISL) is solely bearing the transportation burden, which at times leads to delays.

 

• Some ships remain stranded at Iranian ports due to sanctions and the inability to make payments.

 

4. Inefficiency of Infrastructure and Equipment:

• Malfunctioning unloading and loading equipment, shortage of suitable cranes, and inadequate transportation infrastructure (such as railways and roads) cause delays in container movement.

 

• High warehousing and demurrage costs (penalties for container delays) also reduce the incentive for cargo owners to expedite the clearance process.

 

5. Economic factors and decisions by cargo owners:

• Some cargo owners, due to concerns about hoarding regulations or currency exchange rate fluctuations, prefer to keep their goods at ports until the market stabilizes.

 

• In some cases, goods remain at ports because the owners do not have an immediate need for them or are facing financial difficulties.

 

6. High traffic at key ports:

• Shahid Rajaee Port, as Iran’s largest container port, handles a high volume of transit and imported goods, which sometimes leads to congestion and container accumulation.

 

Comparison with other parts of the world

1. Rate of container accumulation:

• In Iran, container accumulation accounts for 5 to 7 percent of total container operations, which is higher compared to advanced global ports (such as Shanghai or Singapore). In top global ports, customs and logistics processes are more optimized, and accumulation is usually less than 2–3 percent.

 

• For example, in 2020, around 93,082 TEUs of containers were accumulated in Iranian ports (71,395 TEUs in Shahid Rajaee Port), while major global ports like Shanghai, which handle 40 million TEUs annually, have significantly lower accumulation levels.

 

2. Global Factors vs. Iran:

• At the global level, container congestion usually occurs due to temporary disruptions (such as the COVID-19 pandemic, the grounding of the Ever Given ship in the Suez Canal in 2021, or container shortages).

 

• In Iran, in addition to these global factors, sanctions, currency issues, and domestic bureaucracy play a more significant role. For example, in ports like those in China or Dubai, customs processes are digital and faster, while in Iran, they are still dependent on paperwork and inter-agency coordination.

 

3. Infrastructure and Technology:

• Advanced global ports utilize smart technologies (such as smart containers and automated tracking systems) and modern infrastructure (high-speed cranes and automated terminals), which minimize loading and unloading times.

 

• In Iran, the lack of modern equipment and inefficiencies in logistical systems lead to increased container waiting times.

 

4. Sanctions and Shipping Monopoly:

• Unlike Iran, which is largely dependent on domestic shipping due to sanctions, global ports benefit from competition among international shipping lines, resulting in higher efficiency and lower costs.

 

Solutions to Reduce Cargo Backlog in Iran:

• Speeding up customs procedures: Digitizing processes and reducing the number of required approvals.

• Resolving currency and banking issues: Creating alternative mechanisms for international payments under sanctions.

• Upgrading infrastructure: Investing in modern loading and unloading equipment and improving the domestic transport network.

• Incentivizing cargo owners: Offering discounts for quick clearance and setting specific time limits for cargo storage.

• Activating the private sector: Transferring container terminals to the private sector to enhance efficiency.

 

Conclusion

The accumulation of containers in Iranian ports occurs due to a combination of complex bureaucracy, sanctions, currency issues, infrastructural inefficiencies, and the economic decisions of cargo owners. Compared to advanced global ports, Iran faces greater challenges rooted in political and economic issues. However, by reforming customs procedures and investing in infrastructure, this problem can be significantly reduced.