China and US Block North Korean Shipping

 26 Feb 2016 02.44pm

Following recent nuclear and missile tests carried out by North Korea, China and the US have agreed to impose tougher financial sanctions in order to restrict the movement of shipping to and from the hermit state’s ports, according to The Maritime Executive.

China had already banned port calls from North Korean vessels before the announcement was made.

Read: Blacklisted North Korean Ships ‘Still Active’

A local Chinese businessman said: "Most North Korean exports currently come through Dandong port and an entry ban on North Korean ships may upset North Korea's economic growth, as well as its efforts to earn hard currency."

The impact of sanctions on countries has been brazenly displayed by the recent lifting of sanctions on Iran. The international move has led to a structural redevelopment in how the regional economy will function.

It is hoped that the lifting of sanctions on Iran could provide a fillip to the struggling bulk market. However, even the introduction of Iran, with its wealth of resources, is unlikely to be nearly enough to have a mitigating influence on the stagnant bulk trade, which has hit historic lows in recent weeks. 

  Global Economy/Trade, Politics, Port Governance