Introduction
The recent explosion at the Iranian Port of Shahid Rajaei in Bandar Abbas caused severe disruptions in the maritime and possibly intermodal supply chains. On 26th April at 12:20 IRST, a container blast occurred inside a warehouse in a section of the port. The explosion killed at least 70 people and over 1,000 were injured. The incident caused the destruction of at least 10,000 containers as well as extensive damage to the port structure itself. The cause of the explosion is still under investigation, but preliminary reports indicate that it may have originated from the improper storage of sodium perchlorate, a chemical used to produce missile propellant. Iranian authorities claimed that the blast is to be attributed to poor storage of “chemicals inside the containers” and confirmed that “shortcomings, including noncompliance with safety precautions and negligence,” caused the incident.
The Port of Shahid Rajaei is a major logistics hub. The port handles about 85-90% of Iran’s container traffic and 55% of the total trade volume, including oil, gas, chemicals, and agricultural products. The incident caused the immediate and complete halt of operations at the port, leading to disruptions of national and regional supply chains. Transport operations partially resumed for “essential goods and shipments” on 27th April, but it is unclear when the port will be fully operational again.
Despite the current lack of official data given the ongoing nature of the investigation, this report aims to shed light on the potential consequences the incident has had on national and regional trade. First, it identifies the port’s critical supply chain components (key nodes, structure, and processes). Second, it provides an assessment on the direct effects the explosion has had on the port as well as an analysis of potential cascading effects to the wider supply chains. The report concludes with a summary of the key findings.
ANALYSIS
Critical supply chain components of the Port of Shahid Rajaee
The Port of Shahid Rajaee is strategically located on the northern shore of the Strait of Hormuz. It has an area of 2,400 hectares that includes three basins with a depth of 13 to 17 metres, 35 berths – oil (3), conventional (20), container (7) and multi-tasking (5) – and nearly 500,000 square metres of warehouses. The port handles 75 to 83 million tonnes of cargo per year on average and is responsible for 85–90% of Iran’s container traffic. It is connected to other parts of the country by road, railway, and airline – through the Bandar Abbas International Airport (BND).
The Port of Shahid Rajaee is Iran’s largest and most advanced commercial port. It is not only a significant national maritime and logistics hub, but it is also a pillar for regional trade. According to the International Monetary Fund’s platform PortWatch, the port has strong upstream and downstream connections with the ports of Jebel Ali (United Arab Emirates), Klang (Malaysia) and Zhuhai (China) as well as with other national ports such as Kharg Island, Bandar-E Pars and Chabahar. The port is also a key node within the International North-South Transit Corridor (INSTC).
About 90% of Iran’s container goods, 70% of transit and 55% of maritime exports and imports are moved through this port. The majority of vessels passing through the port annually are container ships, followed by general cargo ships. In 2024, the cargo throughput of the Port of Shahid Rajaee was 85,027,062 tonnes. Oil, containerised cargo, and construction and mineral goods represented the 89% of all the cargo throughput. Specifically, the port loaded 49,323,309 tonnes of goods and discharged 35,703,753 tonnes of goods. In comparison, Iran’s second port of Imam Khomeini in Khuzestan Province handled 49,281,242 tonnes of products in 2024.
The port complex comprises dedicated terminals for fuel transit and bunkering, containers, general cargo, petrochemical products, and minerals. It also hosts advanced infrastructure networks for water, power, telecommunications, IT, and surface water discharge. Furthermore, it is closely integrated with industrial areas due to its closeness to steel plants, refineries, shipyards, and factories producing aluminum, copper, and other key commodities.
Vulnerability assessment and cascading effects
The explosion at the Port of Shahid Rajaei occurred at 12:20 IRST of 26 April in a section allegedly operated by Sina Marine Services and Ports Company, a company owned by the Islamic Revolutionary Guard Corps and sanctioned by the United States. The exact cause of the explosion, allegedly triggered by a chemical substance used to produce missile propellant, is under investigation. Nonetheless, Iranian authorities The incident caused at least 70 deaths and over 1,000 injured people.
The 15-hectare Sina yard, epicenter of the blast, was completely destroyed. According to one source, at least 10,000 containers were affected albeit the area can reportedly store between 12,000 and 20,000 20-ft containers. The administration building of the Sina Marine and Port Services Development Company was also wiped out. According to media outlet Iran International, three other areas were severely affected. The 10-hectares section of the port operated by Khazar Qeshm Company, located immediately west of the epicenter, was also including the company’s headquarters. The administrative area of the port customs office, south of the epicenter, was damaged and the roof of a building collapsed. The Onik section of the port also showed visible damage. On the other hand, the petroleum storage area and the hazardous materials zone, located about 1,000 and 1,300 meters away from the epicenter respectively, were unaffected.
The incident disrupted over “half of the country’s nominal loading and unloading capacity.” to clearly discern the effect of the port explosion on national and regional supply chains, a few foreseeable consequences can be pointed out. The sudden interruption of port operations severely affected imports and exports, halting the flow of goods and causing cargo backlogs. According to a source, the impact was particularly felt for the food sector since Iran relies on maritime imports for wheat, rice, sugar, cooking oil, corn, soybean, and barley. The suspension of food imports may cause an increase in prices for basic goods, among other things. Considering that the port is well-connected to multiple industries, including steel, oil, petrochemical and automotive, delays in the supply chain caused delays downstream at the production stage. Diverting ships to other ports, including Bandar Abbas and Chabahar, may have increased congestion, shipping costs and demurrage charges. The incident, particularly because it was caused by negligence, will likely damage the reputation of the port as well as increase insurance premiums. Spillover effects may also hit other countries in the region. The Port of Shahid Rajaee is a major hub on the International North-South Transit Corridor (INSTC), meaning that significant disruptions at the port could hamper the movement of goods to Central Asia, the Caucasus, the Persian Gulf and Gulf of Oman regions, as well as to Afghanistan, Pakistan, and Iraq. According to an analyst, “While the immediate impact may be contained regionally, the broader effect is a further tightening of global supply chains, with delays and cost increases rippling across industries.”
The unaffected areas of the port became operational again within 48 hours. According to Iran’s Port & Maritime Organization, since the explosion and cargo operations have proceeded “under normal conditions.” The fact that the port has not shut down completely for a prolonged period of time will mitigate the overall economic costs of the incident, but the consequences may still be dire. Authorities have not released any official figures concerning the damage toll and the investigation is still ongoing. Another issue to take into consideration is the fact that the Iranian government may cover up the incident by lying about the cause, on the extension of the area of the port affected, and on the number of casualties.
CONCLUSION
Notwithstanding the lack of official data on the direct and indirect consequences of the Shahid Rajaee Port explosion, this report aimed to provide an account of the potential effects the incident may have had in the short term and may have in the longer term. As Iran’s major commercial port and container gateway in the INSTC, disruptions at the Port of Shahid Rajaee not only have domestic consequences but also spillover effects on regional and possibly global supply chains. Domestically, the sudden interruption of imports may cause a spike in prices, especially in essential industries like food. The suspension of port operations may cause cargo backlogs that, in turn, cause shipping delays, vessel diversions, and production issues for downstream industries. Moreover, the port itself may suffer from reputational damage and may see an increase in insurance premiums. In the wider supply chain, the explosion may cause a rise in shipping costs and the disruption of the transit of goods to other regions and countries. Iran’s Port and Maritime Organization claimed that the reconstruction of damaged facilities and the relocation of containers are underway, noting that “ full recovery will take time.” It is unclear when the port will be fully operational again, but it is certain that the domestic economic cost of the incident is extremely high and resonates beyond national borders.
