Attacks on Red Sea Ships Disrupt Jordan’s Commercial Sector

A Houthi military helicopter flies over a cargo ship in the Red Sea. (Reuters)

Jordan relies on imports to cover the majority of its food needs, most of which cross the country’s only seaport of Bab al-Mandab strait, as the Houthi group continues to attack commercial ships in the Red Sea.
Jordanian imports cover between 85 and 90 percent of the country’s food needs. 65 percent of the volume of these imports cross Bab al-Mandab Strait towards the port of Aqaba. Fears have been mounting over the repercussions of the security crisis in the Red Sea and the continuous attacks by the Houthis against commercial ships.
According to a report by the Arab World Press (AWP), the Houthi attacks disrupted global trade in the Red Sea, and major shipping companies diverted their ships, choosing longer route around Africa instead of passing through the Suez Canal.
Yemen’s Houthi groups are targeting ships in the Red Sea, in support of the Hamas movement, which is fighting Israel in the Gaza Strip in a war that broke out on Oct. 7.
These attacks led to higher shipping costs and longer delivery times, as stated by Mahmoud Al-Daoud, owner of a small company that imports canned food in Jordan.
Al-Daoud told AWP that his company's financial capabilities do not give him much room for adventure or to bear losses if the tanker carrying his goods was “sabotaged or seized,” or even to incur additional shipping and delivery costs.
“The profit margin after transportation and storage costs in normal situations does not exceed 20 percent, from which the company pays the salaries of employees and workers and other operational costs. Therefore, any additional expenses will cause losses in profits and may reach capital,” he remarked.
In December, Maersk, one of the largest shipping companies in the world, suspended shipping through the Red Sea and Suez Canal “until further notice”, after one of its ships was attacked by the Houthis off Yemen. The attack was confronted by American forces stationed in the area. US Central Command said that its helicopters sank three Houthi boats.
Maersk had resumed shipping through the Red Sea on Dec. 24 after the United States announced the start of an operation to protect ships near Yemen with the participation of more than 20 countries.
However, “the challenge is great” for the commercial sector in Jordan, said the head of Jordan’s Chamber of Commerce, Khalil Haj Tawfiq, especially with regard to the flow of goods into the country and shortages in local markets.
As the Houthi attacks on ships in the Red Sea continued, the Jordanian Ministry of Transport quickly concluded an agreement with the Arab Bridge Maritime Company to operate the Arab line for land and sea transport between the port of Aqaba and the Egyptian ports overlooking the Mediterranean Sea. The Arab Bridge Maritime Company was established in 1985 after an agreement between the governments of Jordan, Egypt and Iraq, as its website explains.
In a meeting held last week in the Amman Chamber of Industry, Jordanian Minister of Transport Wissam Al-Tahtamouni confirmed that the cessation of shipping lines through the Red Sea will lead to an increase in the cost of insurance in addition to longer delivery times, for imports and exports.
He added that the currently proposed alternative is the continued flow of goods through the land and sea transport lines of the Arab Bridge company.