Consumer sector braces for possible price hike as China partially closes port

AMMAN — Chinese authorities announced the partial closure of the third busiest container shipping port in the world after one of its workers was infected with COVID-19, which threatens to further disrupt global trade, the Jordan News Agency, Petra reported.

According to the port’s electronic platform, all incoming and outgoing container ships were stopped at Meishan Wharf at the Ningbo-Zhoushan Port on Wednesday, August 11 until further notice, Petra stated.

Textile and Readymade Clothes Syndicate President Munir Deyyeh said that the port’s closure is “unsettling”, as it implies a new rise in sea freight prices.

“We are expecting a new rise in the costs of sea freight at the beginning of September,” Deyyeh told The Jordan Times on Monday.

He said that because most consumer goods in Jordan are imported from China, costs will likely increase for importers and traders and the commercial sector will face pressure during the coming period. 

Deyyeh indicated that all consumer sectors will be affected by this price hike, as the Kingdom’s imports from China exceed JD3 billion per year.

“The government must initiate a set of decisions to counter these increases with a defence order to exclude customs and tax duties on sea freight goods and to reduce sales taxes as well, in order to be able to keep local market prices in their normal ranges,” Deyyeh noted.

Deyyeh expressed his hope for government help, as the rise in sea freight costs with the start of the winter season will cause new challenges for traders. “We need to act fast so there will not be a lack of goods and price hikes, especially during the upcoming winter season,” he added.