Rising shipping costs from regional tensions may boost Jordan as trade corridor — syndicate
The Jordan Times
AMMAN — President of the Association of Owners of Clearance and Transport Companies Daifallah Abu Aqoula on Monday warned that the ongoing war involving Israel, the US and Iran, coupled with the closure of the Strait of Hormuz, is exerting mounting pressure on global supply chains and shipping costs.
He said the developments pose significant challenges to trade flows, while also presenting an opportunity for Jordan to reinforce its role as a regional logistics hub.
In a press statement cited by Al Mamlaka TV, Abu Aqoula noted that operations at the Port of Aqaba remain normal so far, warning that a prolonged crisis could drive up shipping and energy costs, with ripple effects across all sectors, ultimately increasing the prices of goods and services.
He also cautioned that continued disruptions could intensify pressure on land transport networks and clearance companies, stressing the need for preparedness to manage potential delays.
Abu Aqoula emphasised the importance of closer public-private coordination to ensure the smooth flow of goods. He proposed the formation of a joint committee, headed by the Minister of Industry, Trade and Supply, to monitor supply chains, assess risks and develop contingency plans.
He added that the private sector is already tracking developments through a committee established at the Amman Chamber of Commerce, which includes the Jordan Shipping Association, the Association of Owners of Clearance and Transport Companies, the Logistics Association and the Truck Owners Association, with continuous, around-the-clock coordination.
Abu Aqoula also underscored the need to enhance regional cooperation among Jordan, Syria, Iraq and Gulf Cooperation Council countries by removing logistical bottlenecks, facilitating container movement via land routes, reducing fees and streamlining customs procedures.
Strengthening such connectivity, he said, could help stabilise trade flows by linking the Mediterranean and the Red Sea, highlighting the strategic geographic position of both Jordan and Syria.
He further warned of potential delays in the arrival of raw materials and essential goods for Jordanian industries, which could increase production costs and push up prices in local markets, particularly if prices rise in exporting countries.
Abu Aqoula cautioned that further disruptions could arise if the Bab el Mandeb Strait were to close, noting that such a scenario would complicate access to key raw materials and increase reliance on alternative routes through Syria and Turkey or via Egyptian ports, despite higher costs and longer transit times.
Despite these risks, he said Jordan is actively working to develop alternative export and import routes to sustain trade flows at the lowest possible cost and shortest transit time. These include overland routes through Syria and Lebanon to Mediterranean ports, expanded maritime links via the Red Sea, and stronger connectivity with Gulf ports.