Identifier
Created
Classification
Origin
06DUBAI6884
2006-11-22 10:39:00
CONFIDENTIAL
Consulate Dubai
Cable title:  

IRANIAN DHOW TRADE WITH DUBAI

Tags:  ECON EWWT PGOV IR AE 
pdf how-to read a cable
VZCZCXRO6244
RR RUEHBC RUEHDIR RUEHKUK
DE RUEHDE #6884/01 3261039
ZNY CCCCC ZZH
R 221039Z NOV 06
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC 4900
INFO RUEHAD/AMEMBASSY ABU DHABI 1915
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RHBVAKS/COMFIFTHFLT
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUCNIRA/IRAN COLLECTIVE
RUEHNR/AMEMBASSY NAIROBI 0020
RUEHNE/AMEMBASSY NEW DELHI 0076
RUEHIL/AMEMBASSY ISLAMABAD 0196
RUEHDE/AMCONSUL DUBAI 7928
C O N F I D E N T I A L SECTION 01 OF 03 DUBAI 006884 

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/19/2016
TAGS: ECON EWWT PGOV IR AE
SUBJECT: IRANIAN DHOW TRADE WITH DUBAI

DUBAI 00006884 001.2 OF 003


CLASSIFIED BY: Paul R Sutphin, Consul General, Dubai, UAE.
REASON: 1.4 (b),(d)


C O N F I D E N T I A L SECTION 01 OF 03 DUBAI 006884

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/19/2016
TAGS: ECON EWWT PGOV IR AE
SUBJECT: IRANIAN DHOW TRADE WITH DUBAI

DUBAI 00006884 001.2 OF 003


CLASSIFIED BY: Paul R Sutphin, Consul General, Dubai, UAE.
REASON: 1.4 (b),(d)



1.(C) Summary: Dubai is the hub of commercial dhows carrying
cargo to and from Iran. Dhows carry a wide variety of
commodities to Iran, from trucks and televisions to Pringles and
Pepsi. Often cargo is brought directly from container ships and
is broken down for re-export from Dubai by dhow. Dubai customs
primary concerns are collecting appropriate import duties on
goods and preventing drugs from entering the UAE. Customs
officers rarely make more than cursory inspections of dhows
leaving for Iran. Most Iranian dhow crewmen are eager to speak
with Americans. On two occasions suspected Iranian security
personnel posing as dhow crewmen kept poleconoff under
observation. End Summary.

2.(U) Dubai is the hub of commercial dhow traffic in the Persian
Gulf, the Gulf of Oman, and the Arabian Sea. The majority of the
traffic is trade between Iran and Dubai. Roughly 200 to 250
dhows are in the Dubai creek on an average day, of which 65 to
75 percent are registered in Iran. Indian and Pakistani dhows
represent the bulk of the non-Iranian cargo dhows using Dubai.

Destinations
--------------

3.(SBU) The vast majority of Iranian dhows loading cargo in
Dubai are destined for Bandar Abbas, Chabahar, Kish, Bandar
Lengeh, Bushehr, and Qeshm. A few dhows sail to Abadan and
Khorramshah and other Iranian ports. On occasion, Iranian dhows
will sail to non-Iranian ports in the Gulf and the Arabian Sea,
such as Bahrain and Mutrah, Oman. One Iranian dhow captain,
known as a nakhouda, said that outside of the Persian Gulf he
had sailed his 400 ton dhow, the Mohammadian, to India,
Pakistan, Tanzania, and other east African ports. He added that
Iranian dhows are not permitted to call at Mombasa, Kenya, but
he did not know why.

Types of Cargo
--------------

4.(U) Dhows bound for Iran carry almost every conceivable item.
Major cargo types include motor vehicles, spare parts, tires,
durable goods, consumer goods, electronics, foodstuffs, and

textiles. American goods bound for Iran are plentiful, ranging
from refrigerators to Pringles. Almost all of the cargo is
break-bulk; however, 20 foot containers are sometimes shipped on
dhows. Few Iranian dhows are equipped with cranes. Almost all
cargo is manhandled. Mobile cranes are used to load extremely
heavy or bulky loads, such as motor vehicles.

5.(U) Fruits, nuts and other agricultural products, processed
foodstuffs, carpets, textiles, and manufactured goods are the
main cargos shipped from Iran.

Taking Cargo From Iraq
--------------

6.(U) Some nakhoudas said they sometimes load cargo at the Iraqi
port of Khor Zubair. They said only empty Iranian dhows are
permitted to enter Iraqi ports. Iranian dhows are chartered for
Iraqi cargo in Khorramshahr and then sail empty to Khor Zubair.
These dhows mostly carry Iraqi dates and other agricultural
products to Sharjah's smaller dhow wharfage in the UAE. Note:
UAE flagged dhows carry cargo from Dubai to Khor Zubair and Umm
Qasr. End note.

Transshipment
--------------

7.(C) Many containers that enter the UAE are unloaded directly
onto dhows. On most days, five to ten 40 foot containers are
unloaded directly onto dhows. Most contain bags of rice, sugar,
flour, and other grains. Islamic Republic of Iran Shipping Line
(IRISL) containers are often unloaded onto Iranian bound dhows.
The unloading of IRISL containers onto Iranian dhows allows the
cargo to be shipped to small ports that cannot handle either the
containers or large ships. According to a DP World official,
Port Rashid -- at the mouth of the creek --receives many more

DUBAI 00006884 002.2 OF 003


IRISL containers than Jebel Ali Port. Comment: Unloading the
containers may also be a means of avoiding duty that Iranian
customs would levy at a larger port. End comment.

Dubai Customs
--------------

8.(C) All dhows arriving in Dubai creek are required to clear
customs before unloading. One quay in Dubai creek is exclusively
for dhows clearing customs. Customs officers are said to be
concerned about drug smuggling and ensuring the proper duty is
paid for the load being imported.

9.(C) Dhows being loaded are subject to customs inspection.
Dhows fly a small green pennant to indicate to customs officers
ongoing cargo loading. According to dhow crews and stevedores,
customs officers rarely inspect outbound cargo.

10.(C) Customs inspection of outbound cargo generally comprises
approval of the bill of lading after being paid a documentation
fee of AED 800. In most cases the shipper has Dubai customs
approve the bill of lading once the goods have been loaded onto
a dhow. Thorough customs inspections are generally conducted
when customs doubts the bill of lading and disputes the amount
of import duties to be refunded. Dhows leaving Dubai must stop
for a final check at the customs quay at the mouth of Dubai
creek.

Sailing Times
--------------

11.(U) According to nakhoudas, the sailing times between Dubai
and the major Iranian ports vary greatly depending on each
vessel's characteristics, as well as the wind and sea state.
Bandar Abbas is the closest major port to Dubai and average
voyages take 18 to 24 hours. A voyage to Chahbahar in eastern
Iran normally takes 2 days. Voyages to Bushehr and Abadan in the
northern Gulf take 2 to 3 and 4 to 5 days respectively.

Time in Port
--------------

12.(U) Nakhoudas are responsible for negotiating cargo for each
voyage, making the time between voyages dependent on a
nakhouda's ability to secure a cargo. Generally, an Iranian dhow
will spend 15 days in Dubai from the time it arrives at Dubai's
customs quay until customs clears it to leave. Most of the time
in Dubai is spent negotiating for cargo and loading.

13.(U) According to crewmen, dhows normally spend 3 weeks to a
month in Iranian ports before returning to the UAE or elsewhere.

Positive View of Americans
--------------

14.(U) The crewmen working on Iranian dhows are poorly educated.
Many of the older crew, including nakhoudas, are illiterate.

15.(U) Iranian dhow crews and stevedores are normally friendly.
The vast majority are genuinely pleased when they meet an
American. Invariably they say they like Americans and America
and they hope relations will improve between Iran and the United
States. One group of crewmen joked that if Iranian President
Ahmednijad and President Bush were locked in a shipping
container and dumped into the sea, problems between Iran and the
United States would be solved. Some of the crewmen ask how to
get a visa to move to the United States. They also want
Americans to visit Iran. They are proud of their country and
culture, but are apolitical.

Security Personnel
--------------

16.(C) Poleconoff has encountered three Iranian dhow crewmen who
are likely security officers. The dress, demeanor, and look of
the three were different from those of the average dhow crewmen.
The first one encountered interjected probing questions while
PolEconoff was talking with the nakhouda of the MSV Mohammadian.
When he arrived, the nakhouda and other crewmen ceased talking
with poleconoff. On a different day, two Iranians came from a
Chahbahar based dhow. One spoke some English. He openly attacked

DUBAI 00006884 003.2 OF 003


U.S. policy, President Bush, and American presence in the
region. This was the only Iranian who expressed any
anti-American sentiments out of more than 100 crewmen and
stevedores encountered. The same crewman was later observed
shadowing Poleconoff.




WALL
SUTPHIN