Amman, Mar. 23 (Petra)-- Head of Association of Owners of Clearance and Transport Companies (AOCTC), Deifallah Abu Aqouleh, confirmed that operations at Aqaba Port are currently running normally, despite ongoing regional challenges.

However, he warned that continued instability in the region is likely to drive up shipping costs and energy prices, negatively impacting various economic sectors and increasing the cost of goods and services.

In a statement issued Monday, Abu Aqouleh noted that pressure on land transport chains and clearance companies could intensify if the situation persists. He stressed the importance of strong coordination and partnership between the public and private sectors to ensure the uninterrupted flow of goods into the Kingdom.

He called for the formation of a joint supply chain monitoring committee comprising representatives from both sectors to regularly assess risks, develop contingency plans, and ensure a swift and flexible response to global market changes.

Abu Aqouleh also highlighted the need to strengthen cooperation between Jordan, Syria, and Gulf countries by removing obstacles hindering supply chain flows, facilitating the smooth passage of containers via land routes, and reducing fees on Jordanian trucks to improve regional transport efficiency and lower costs.

He emphasized that enhanced cooperation in transport and trade among these countries would stabilize regional supply chains, noting that Jordan and Syria’s strategic location serves as a vital bridge linking goods movement between Mediterranean and Red Sea ports.

He added that regional conditions, including the closure of the Strait of Hormuz, are affecting Jordanian exports and local industries, as companies face rising shipping costs and potential delays in receiving goods and raw materials necessary for production.

"There are growing concerns over delays in the arrival of raw materials and essential goods for Jordanian industries, which could increase production costs and impact local market prices," he said, noting that Jordan is working to develop alternative import and export routes to ensure continuity of trade flows at minimal cost and time.

These alternatives include overland transport through Syria and Lebanon to Mediterranean ports for faster access to European and global markets, as well as strengthening maritime links between Aqaba Port and the Red Sea, and enhancing connections with Gulf ports to reduce transit time and costs. He also stressed the need to lower customs fees on Jordanian trucks and streamline clearance procedures.

Abu Aqouleh said these measures would help maintain the competitiveness of Jordanian exports, support local industries, and reduce reliance on traditional maritime routes affected by regional crises.

He warned that a simultaneous closure of the Bab al-Mandab Strait and the Strait of Hormuz would have a far greater impact on Jordan, severely disrupting supply chains and making it more difficult to secure essential raw materials.

"Jordanian exports would face additional challenges due to the halt of oil and cargo shipments through the Red Sea, increasing reliance on alternative land routes through Syria and Turkey to reach the Mediterranean, or on Egyptian ports, despite higher costs and longer transit times," he added.

International maritime reports indicate that shipping distances from Shanghai have increased from 6,100 to 9,500 nautical miles, resulting in delays of 10 to 13 days. Routes from Jebel Ali in the UAE have seen even greater delays, with transit times rising from 6–8 days to 20–24 days, alongside an additional 4,800 nautical miles.

He noted that shipping lines have imposed a range of additional fees due to geopolitical risks, including mandatory rerouting charges ranging from $700 to $800, emergency surcharges reaching up to $3,500, war risk fees between $1,500 and $3,500, and conflict emergency fees ranging from $2,000 to $4,000.

An emergency fuel surcharge has also been introduced, varying by shipping route and carrier, further increasing import and export costs.

Abu Aqouleh stressed that these developments necessitate strengthening Jordan’s strategic reserves of raw materials, enhancing logistical emergency plans, and boosting regional cooperation to ensure the continued movement of goods and minimize the economic impact.

He concluded by affirming that Jordan is capable of turning these challenges into opportunities by reinforcing its role as a regional logistics hub, ensuring the steady flow of goods and supporting domestic industries.

//Petra// MF