January 2, 2024

Jordan secures wheat and barley imports amid Red Sea tensions

Jordan's Ministry of Industry, Trade, and Supply said that more than 90% of the country's crucial wheat and barley imports remain unaffected, amid disruptions in Red Sea shipping, prompting shippers to seek alternative routes, ChemAnalyst reported.

Yanal Barmawi, the spokesperson for the ministry, said most of these essential imports are shipped from Eastern European nations, such as Romania and Montenegro. The shipping route traverses the Suez Canal, culminating at Aqaba port. However, recent challenges in the Red Sea have led to the suspension of operations, compelling a re-evaluation of shipping routes.

Transport Minister Wisam Tahtamouni, recognising the urgency of the situation, has engaged with representatives from the Amman Chamber of Industry (ACI) to explore alternative sea freight routes to Europe and the United States. The heightened tensions in the Bab Al Mandeb Strait, a critical waterway for Jordan's imports, contribute to increased freight prices.

Tahtamouni disclosed that 65% of Jordan's imports rely on the Bab Al Mandeb Strait, emphasising the need for viable solutions. ACI President Fathi Jaghbir underscored the potential adverse impact on Jordan's trade should the strait remain closed due to ongoing tensions.

The minister highlighted a previous agreement with Egypt to establish an alternative freight route connecting Mediterranean ports, offering special privileges and facilities.

Global news outlets reported the Bab Al Mandeb Strait as a vital global shipping route, with over 17,000 ships passing through. Ongoing tensions in this strategic waterway pose a significant setback to global trade.

To bolster wheat reserves amid uncertainties, the ministry has floated a tender for an additional 120,000 tonnes of wheat, aiming to fortify the country's wheat stock and maintain a resilient supply chain.

-      ChemAnalyst