A soldier walks at Red Sea port of Hodeidah, Yemen May 10, 2017. REUTERS/Abduljabbar Zeyad
CAIRO - 26 December 2023: Jordan and Egypt have agreed to operate the Arab Bridge Maritime and Land Transport Line between Aqaba and Egyptian ports on the Mediterranean as an alternative shipping route. This decision comes after several major shipping companies announced the suspension of operations in the Red Sea and Bab al-Mandab, according to the Jordan News Agency.
With the escalating Houthi threats in the southern Red Sea, targeting ships heading to and from Israel to pressure the occupying state to cease the war on the Gaza Strip, several international shipping companies announced, earlier in December, a 200 percent increase in ship insurance costs.
This was followed by another decision to halt the passage of their ships through the Red Sea, in anticipation of such threats, and change their route to the Cape of Good Hope, increasing the navigation period to European countries by 10 to 15 days.
This raises concerns about the increase in commodity prices in the global markets, which have not yet recovered from the repercussions of the Ukraine crisis and the COVID-19 pandemic.
As per the Egyptian-Jordanian agreement, the Arab Bridge Maritime Company swiftly completed all necessary international and technical requirements to operate the alternative route by establishing a new maritime path to serve both land and sea transportation needs.
The alternative route passes through the Aqaba region, the port of Nuweiba, and the Egyptian ports on the Mediterranean, including Alexandria, Port Said, and Damietta.
Managing Director of the Arab Bridge Maritime Company, Adnan ALabadleh, stated that the alternative land-sea route provides a substitute for transporting Jordanian exports to the United States and Europe.
Connecting the Red Sea and the Mediterranean through land routes diversifies trade exchanges, reduces transportation costs, and takes advantage of benefits provided by the Egyptian side to lower the cost of transporting Jordanian exports and facilitate their access to the United States and Europe.
The shipping time for transporting containers from industrial zones in Jordan to the United States via Egyptian ports will be reduced to only 18 to 20 days, according to ALabadleh.
He explained that this alternative route enhances Jordan's competitiveness, as part of the trade shifts from northern Saudi Arabia and eastern Iraq towards this route.
The suspension of navigation lines through the Red Sea will impact cost increases and insurance, along with extended timelines for the arrival of goods, both exports, and imports to and from Jordan. This is particularly significant as 65 percent of Jordan's goods come through the Red Sea, as noted by Jordanian Transport Minister Wissam Al-Tahamouni.
Comments
Leave a Comment