Red Sea crisis: Aqaba port faces shipping challenges with soaring containers rates

AMMAN — The unrest in the Red Sea has had significant consequences on the total number of containers arriving at the port of Aqaba, according to stakeholders.

Dureid Mahasneh, Head of the Jordan Shipping Association, told The Jordan Times on Tuesday that the Red Sea crisis led to delays in the arrival of goods, increasing container rates. “Most of the Kingdom’s exports and imports pass through the Bab Al MandabStrait…meaning that major sectors will be impacted,”.

“The crisis affects Jordan financially, but the movement of goods will not be interrupted,” he stated, adding that the re-routing has increased shipping rates, as freight companies impose extra charges due to long and costly detours.

He added that the port of Aqaba handles nearly 900,000 containers each year. However, as a result of the current situation, there is an apparent decline in the number of containers arriving at the port. 

Freight costs of ships coming from the Far East, China and India have particularly skyrocketed. Whereas the container that cost around $1000 before the crisis is now around $4000, he further said.

Nael Kabariti, chairman of the Aqaba Chamber of Commerce, said that the longer passages are now taken and the soaring freight prices are the major issues amid the Red Sea crisis.

“The crisis has significantly disrupted shipping operations in Jordan and has affected the global maritime industry,” he explained, highlighting the importance of having regional cooperation and the need to examine the current situation in order to minimise the effects of the ongoing freight crisis.