New maritime route to increase trade competitiveness of Jordan, Egypt

Economy

Published: 2024-01-07 16:20

Last Updated: 2024-02-25 17:16


New maritime route to increase trade competitiveness of Jordan, Egypt
New maritime route to increase trade competitiveness of Jordan, Egypt

The newly announced shipping route, dubbed the Arab Line for Maritime Transport, that links Egypt, Jordan, and Iraq, and launched recently by the Arab Bridge Maritime Company, continued to operate and facilitate the transportation of goods, essential commodities, and Jordanian exports destined for the United States and European countries, amidst the recent disruptions to maritime shipping routes due to geopolitical tensions.

Naji Al-Ali, a maritime expert and the director of the Aqaba office for CMA CGM and CEVA LOGISTICS, stated that the route commenced operations in the past few days, transporting Jordanian exports to various European countries through the vessels of the Arab Bridge Maritime Company in Aqaba. The shipments reach the Egyptian port of Nuweiba and then proceed to the Mediterranean ports, affirming that the route enhances the competitiveness of Jordan and Egypt, enabling them to play a pivotal role in supply chains and trade routes. It also diverts a portion of trade from northern Saudi Arabia and eastern Iraq towards this route.

The route was established after several major shipping companies announced the suspension of their trips to Red Sea ports via the Bab el-Mandeb Strait, amidst escalating threats to maritime navigation by Yemen's Houthis.

Al-Ali emphasized that since the beginning of the crisis, efforts have been made to find suitable routes and alternative plans to maintain the continuity of supply chains to and from Jordan.

He noted that, in collaboration with the Arab Bridge, containers were transported on trucks via ferries to the port of Nuweiba, then across Egyptian territory to the Mediterranean ports. From there, they are transported by sea to regions in Europe, North America, and North Africa.

Al-Ali explained that the main reason behind this initiative is the geopolitical events in the region, especially the ships passing through the Bab el-Mandeb to the Far East, India, and other areas. These events have negatively impacted shipping prices, experiencing a significant increase of approximately 200 percent.