Experts in maritime transport and logistics expect that the ceasefire in Gaza and the restoration of calm in the Red Sea over the coming weeks or months will help reduce shipping costs and transit times, positively affecting commodity prices, trade, imports, and exports in Jordan and the region.
اضافة اعلان
They noted that the resumption of international shipping lines through the Bab el-Mandeb Strait, instead of rounding the Cape of Good Hope, will restore maritime activity to normal after disruptions caused by the Gaza conflict and Houthi attacks on Israel-linked vessels.
Return to normal maritime activity
Maritime transport expert Dr. Dreed Al-Mahasneh explained that the halt of Israeli aggression on Gaza and the cessation of attacks on ships will allow shipping lines to resume using the strait, which will lower insurance and shipping costs, increase the flow of goods to the Aqaba port, and stimulate regional trade.
He added that shipping companies previously had to reroute via the Cape of Good Hope and rely on smaller feeder ports in the Gulf, which increased shipping time and costs, noting that restoring stability will benefit both Aqaba port and the Suez Canal.
Meanwhile, Jamal Al-Rifa’i, First Vice President of the Jordan Chamber of Commerce, said that reopening the Karameh border crossing with the Palestinian territories, which was closed by Israeli authorities, will help increase exports to the West Bank and Gaza, especially given the reconstruction needs, positively impacting Jordanian trade.
He emphasized that the return of large vessels directly to Aqaba instead of using nearby ports will provide importers and exporters with better options and lower costs, predicting a gradual decline in commodity prices. Al-Rifa’i also noted that regional stability has a positive psychological effect on Jordanian consumers, boosting local commercial activity.
Improved shipping and insurance costs
Nabil Al-Khatib, President of the Logistics Syndicate and member of the Amman Chamber of Commerce, confirmed that the Red Sea ceasefire will encourage the return of some shipping lines, increasing Suez Canal traffic and reducing costs and congestion.
He added that fully resuming the Bab el-Mandeb route may take a few months, but the impact on the regional and global economy will be significant, particularly in lower transportation and insurance costs.
Data from the Jordanian Logistics Syndicate showed a 19.1% increase in containers arriving at Aqaba port during the first nine months of this year compared to the same period last year. By the end of September, 370,608 containers had arrived, versus 313,808 in the same period last year, while exported containers rose 5.7% to 83,127 containers.
In September alone, incoming containers grew 19.4%, while exported containers slightly declined by 1.8%.
Despite challenging geopolitical conditions, hope remains that the Gaza ceasefire and the return of safe navigation in the Red Sea will boost trade and investment in Jordan and the region, improving citizens’ living standards through lower prices and more active markets.
