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Iran shifts to overland routes after $10M daily losses

Iran shifts to overland routes after $10M daily losses

Due to the deterioration of maritime navigation and the American naval blockade, Iran has had to rely more heavily on land transportation through border crossings with Turkey, Armenia, and Afghanistan, in addition to increasing freight movement across the Caspian Sea, in an effort to maintain the flow of its trade. However, the high density and congestion of trucks, especially at crossings like Bazargan, Nurodz, and Dogaron, have led to increased daily costs, with estimated losses amounting to around 10 million dollars. Delaying a truck by one day costs approximately 100 dollars. Despite Iran's efforts to enhance rail transport and utilize alternative routes, limited infrastructure and high costs—up to 12,000 dollars to transport a container by land from China, compared to 3,000 dollars by sea—have resulted in rising prices for goods and inflation exceeding 120%. This situation harms consumers and adds to the country's economic pressure.

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