A Chinese non-vessel owning common carrier (NVOCC) group has been cited by the US Treasury Department for breaching sanctions against Iran, due to its dealings with the Islamic Republic of Iran Shipping Lines (IRISL).
On 19 October 2020, Reach Holding Group Shanghai Co., Ltd, Reach Shipping Lines Co., Ltd, Reach Group’s CEO Eric Chen Guoping, Reach Group president Daniel He Yi, as well as related Hong Kong-registered vessel-owning special purpose companies, Delight Shipping Company, Gracious Shipping Company and Noble Shipping Company, were added to the US Treasury Department’s Office of Foreign Assets Control’s (OFAC) specially designated nationals (SDN) list.
In a Twitter post, US Secretary of State Mike Pompeo said, “Today, we are sanctioning mainland-China and Hong Kong entities and individuals for conduct related to the sanctioned proliferator the Islamic Republic of Iran Shipping Lines. Our warning is clear: If you do business with #IRISL or its subsidiaries, you risk US sanctions. (sic)”
In September 2018, IRISL purportedly transferred ownership of four newly built 14,500TEU container ships to Reach Holding Group (Shanghai).
IRISL had commissioned the newbuildings at Hyundai Heavy Industries in 2016, shortly after international sanctions against Iran were lifted. However, when US President Donald Trump re-imposed the sanctions in 2018, IRISL faced difficulty taking delivery of the ships.
Originally named Hamoun, Radin, Barzin, and Rayen, the ships were respectively re-christened Canreach, Goodreach, Fanreach and Tenreach.
Container News understands that IRISL and the Reach Group have been working together for nearly 20 years.
In July 2017, both sides established a joint venture, IRC, to expand into new markets. An IRISL internal publication stated that the JV’s functions were to transport and store oil and petrochemical products, and related machinery.
Martina Li
Asia Correspondent
