AMMAN, 4 July 2004 — Seven European shipping firms have trimmed by two-thirds congestion surcharges they imposed earlier on cargo heading to Jordan’s Red Sea port of Aqaba from countries on the Mediterranean, officials said yesterday.
The Aqaba Port Corporation Director Saud Srour expected the reduction of surcharges to boost the competitiveness of the country’s sole port vis-à-vis other regional ports.
“The lowering of fees on imports heading from the Mediterranean will encourage more international shipping lines to come to Aqaba, carrying more cargo either for the local market or in-transit for neighboring countries, notably Iraq,” he said.
According to the Executive Manager of the Jordan Shipping Agents Association Mohammad Dalabih, the fees were reduced to $150 from $450 for each 20-foot container, and to $300 from $900 for 40-foot containers.
“The step will be very positive for Jordan as it will result in reducing the cost of cargo for importers and consequently lower prices of imported commodities,” he said.
Both Dalabih and Srour expressed the hope that shipping firms in the United States, Western Europe and the Far East would follow suit.
Surcharges, which stand at $450 and $900, respectively, for 20-foot and 40-foot containers destined to Aqaba from the United States and West European countries, stay as they are.
Surcharges on cargoes coming from the Far East, which stand at $300 and $600 per 20-foot and 40-foot containers respectively, were also not affected.
Last September, international shipping companies imposed surcharges on Aqaba-bound cargoes from various global ports, citing delays at the Jordanian port because of congestion — a matter that resulted in increasing their operational costs.
The congestion at Aqaba developed mainly as a result of the sharp rise in Iraqi imports through the Jordanian port in the wake of the downfall of the former regime of President Saddam Hussein.
Several shipping firms reportedly deserted the Jordanian port and started to use other regional ports such as the port of Jeddah in Saudi Arabia, Haifa in Israel and Tartus in Syria. The chaos at Aqaba prompted the Jordanian government a few months ago to contract the Danish firm, APM Terminals, to operate and the develop facilities at Aqaba Port’s containers terminal.
