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Abu Aqola: Navigation Disturbance in Bab al-Mandab Increases Trade Costs

Abu Aqola: Navigation Disturbance in Bab al-Mandab Increases Trade Costs

The representative of the clearing companies and cargo transport, Dhi'b Allah Abu Aqola, said on Saturday that any disturbance in the Bab al-Mandab route affects trade costs and supply chains in Jordan, given that about 28% of Jordan's foreign trade is linked to this route, with imports linked to it reaching about $6.6 billion annually, in addition to exports exceeding $2 billion.

Abu Aqola pointed out that Jordan has managed to absorb a large part of the operational challenges and maintain the fluidity of cargo movement and the continuity of import and clearance operations, explaining that the impact of security disturbances in the region is mainly focused on shipping and insurance costs and the duration of cargo arrival, while the repercussions of Bab al-Mandab disturbances on Jordan are more focused on cost and time than on the availability of goods or the ability of Aqaba Port and the clearance sector to continue working.

He explained that the average stay of transit containers at Aqaba Port decreased from about 15 days to 12 days, while the average stay of containers entering the local market is about 8 days, along with an increase in the daily operational capacity at the container port from about 900 to 1200 containers.

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