JCC, Ministry of Transport form joint committee to address high shipping costs

(File photo: Jordan News)
AMMAN – On Thursday, the Jordan Chamber of Commerce (JCC) and Minister of Transport, Wesam Tahtamouni, agreed to form a joint committee to follow up on ship passage developments in the Red Sea region, especially those bound for the Port of Aqaba, reported Jordan News Agency, Petra.اضافة اعلان

During a meeting held at the JCC headquarters, Tahtamouni said the government is studying a series of measures to limit the impacts of the recent increase in shipping and insurance costs due to developments in Bab el-Mandeb Strait and changes in shipping routes.

The ministry is working on multiple "strategic" projects to develop the Kingdom's transportation system with a clear plan consistent with the Economic Modernization Vision.

The minister noted future measures will resemble steps taken by the government during the COVID-19 pandemic, which depends on price estimates.

The ministry is currently studying requests of the Kingdom's economic sectors aimed at reducing Suez Canal fees and customs duties on shipping fees. They are also reviewing the latest developments on the reality of shipping routes.

As for an increase in shipping and insurance costs, the minister indicated that some maritime shipping lines have diverted their route via the Cape of Good Hope, causing the journey to lengthen and shipping prices to rise.

Tahtamouni referred to current discussions with Minister of Industry, Trade and Supply, Yousef Shamali, about measures that can be taken to mitigate these effects on the local consumer.

Supply chains are continuing to reach the Port of Aqaba, but the problem still lies in the high costs.