Traffic Delays at the Port of Dammam

As we continue to monitor the delays at the Port of Dammam, concerns are growing that current container traffic delays could worsen during the course of Ramadan, which commences on July 20, 2012 and ends on August 18.

At this time there are thousands of containers that are backing up, with the situation likely to worsen leading up to and during Ramadan. Hapag-Lloyd has imposed an operational recovery charge of $85 per 20-foot and $125 per 40-foot container on all import and export shipments handled at the ports of Jeddah and Dammam, starting the first day of Ramadan, July 20. 

Iran creates Tension in the Straits of Hormuz

In reaction to tightening Western sanctions, Iran on Monday introduced legislation that would work to disrupt the Persian Gulf trade lane that traffics one-fifth of the world's oil. If Iran makes good on a plan to block oil tankers in the Strait of Hormuz, shippers and transportation providers could see their fuel prices spike.

The European sanctions against Iran include an embargo on Iranian crude oil took effect Sunday; the sanctions also ban insuring oil tankers that ship Iranian crude.

It is unclear whether the legislation will pass and how much Iran could disrupt shipping in the strait headed to countries no longer buying its crude, considering the U.S. Navy's Fifth Fleet patrols the waters, according to the New York Times.