Mohammad Al-Bustanji, the head of the Jordanian Free Zones Investors Association, has estimated that over 1,000 vehicles destined for Jordan are currently stranded on ships due to recent events in the Bab el-Mandeb Strait.
Al-Bustanji notes that the current situation is relatively stable, and there is market steadiness. However, he warns of the repercussions if the crisis continues for two to three weeks, asserting that this will inevitably lead to a rise in prices due to increased shipping costs.
This price hike is primarily attributed to the closure of the Bab el-Mandeb Strait, a major artery for goods coming into the kingdom via the Red Sea.
Al-Bustanji added that there's disruption and delay in directing ships, with more than one ship's cargo being rerouted and some being offloaded at different ports in search of alternative routes. If the crisis persists, importers may turn to importing goods via the port of Jebel Ali in Dubai and then transporting them by land to Jordan, which will increase both the cost and time of shipping.
Al-Bustanji emphasized that more than 90% of goods entering Jordan from Asia pass through the Red Sea and Bab el-Mandeb. Even goods arriving via the Suez Canal and typically passing through the Red Sea will be affected by the closure.
He expressed hope that the crisis would be resolved soon to ensure the stability of supply chains and maintain price stability.