September 24, 2024

Ministry Eyes Sea Freight Alternatives to Maintain Smooth Goods Movement


Amman: Minister of Transport Wissam Tahtamouni stated that the ministry is exploring alternatives to ensure the smooth flow of goods amid disruptions in maritime transport in the Red Sea.

During a meeting at the Amman Chamber of Industry to address the impact of navigation events in the Red Sea, Tahtamouni assured that the flow of goods is manageable, and shipping operations to the port of Aqaba are punctual.

She clarified that diversions in the Bab al-Mandab Strait have minimal effects on the Kingdom’s imports and exports, with 65 percent of goods passing through the Red Sea.

Tahtamouni underlined the government’s readiness to consider sea freight alternatives to maintain the consistent movement of goods in and out of the Kingdom and reduce transportation expenses in alignment with the private sector’s needs.

The minister highlighted that the Red Sea navigation issue is a global concern, and the proposed alternative is the Arab land and sea transport route of the Arab Bridge Maritime,

pointing out that
halting shipping through the Red Sea would escalate costs and insurance and extend the timeframes for goods’ arrival or departure.

Fathi Jaghbir, Head of the Amman and Jordan Chambers of Industry, underscored the importance of public-private cooperation to identify suitable alternatives for maritime transport across the Red Sea without increasing costs or affecting national export competitiveness.

Jaghbir revealed plans for the Jordan Chamber of Industry to engage with the Ministry of Industry, Trade, and Supply to allocate part of the Industry Support and Development Fund to aid shipping fees, alleviating the burden on exporters.

He disclosed that this alternative route offers an additional path for transporting Jordanian exports to the United States and Europe, particularly products from qualified industrial zones and agriculture. It establishes a connection between the Red and Mediterranean seas through land routes, diversifying commercial exchange routes, cutting transportation expenses, and capitalizi
ng on advantages presented by Egypt to lower the costs of transporting Jordanian exports, facilitating their delivery to America and Europe.

Additionally, it diverts a portion of trade from northern Saudi Arabia and eastern Iraq to this new alternative, enhancing the Kingdom’s competitiveness and its role in modern supply chains and routes. This results in a reduction in the time needed for Jordanian exports to reach their destinations, improving flexibility, responsiveness, and confidence. It also boosts activity in the Kingdom’s truck sector and increases transit trade volume.

Alabadleh emphasized the features and conveniences offered by the company to users of the alternative Arab land-sea route, including specialized marine units for sea freight and ample capacity for all goods from both directions. Operations occur continuously, and no fines are imposed for containers waiting in yards. The Egyptian ports overlooking the Mediterranean Sea have multiple shipping lines, fostering competition in the arriva
l times of goods at their final destination.

Furthermore, goods are preserved by minimizing the impacts of inspection, unloading, and reloading. Transportation costs remain stable throughout the year, unaffected by seasons or regional events, he added.
Source: Jordan News Agency