Commercial sector discusses Red Sea escalation

AMMAN — The Jordan and Amman chambers of commerce, the Jordan Shipping Association and the Jordanian Logistics Association on Monday agreed to form a joint working team and operations room to manage and monitor the container crisis in the Red Sea. 

During a meeting at the Amman Chamber of Commerce, participants emphasised the need to join national efforts from various government entities and private sector institutions to overcome obstacles related to maritime shipping, the Jordan News Agency, Petra, reported.  

The meeting also considered establishing a national carrier in cooperation with the public sector to ensure the timely and cost-effective arrival of goods.

The chamber urged stakeholders to submit container numbers and relevant shipment information for efficient monitoring of arrivals at the port. 

President of Jordan Chamber of Commerce Khalil Hajj Tawfiq, first Vice President of the Jordan Chamber of Commerce Jamal Rifai, Amman Chamber of Commerce Vice President Nabil Khatib and President of the Jordan Shipping Association Dureid Mahasneh attended the meeting that was held at the Amman Chamber of Commerce.

Prime Minister Bisher Khasawneh on Sunday instructed all relevant ministries and stakeholders to take necessary measures to deal with the possible inflationary impacts on the local market as a result of the ongoing Israeli aggression on Gaza and the prevailing situation in the Red Sea.

During a Cabinet session, Khasawneh said that 15 per cent of the international trade goes through the Bab Al Mandab Strait, and the Israeli war on Gaza resulted in regional developments that some transport companies consider a threat to their navigation.

According to recent estimations made by the Ministry of Industry and Trade, shipping costs were increased by 160 to 170 per cent for shipments coming from Southeast Asia and increased by 60 to 100 per cent for shipments coming from North America and Europe.

Tensions in the Red Sea have soared after the Uonited States and Britain carried out strikes on Houthi rebels in Yemen over their attacks on international shipping, AFP reported. 

The Iran-backed Houthis, who say they are acting in solidarity with Gaza, have carried out a growing number of missile and drone attacks on what they deem Israeli-linked shipping on the key Red Sea trade route.

Around 12 per cent of global trade normally passes through it. But since mid-November the attacks have prompted many shipping firms to take the longer route around the tip of Africa, disrupting supply chains and putting upward pressure on inflation, according to AFP.