Customs officials at the Jeddah Islamic Port have told the importers of shipping containers that shipping fees will increase to SR 1200 from SR 600-700, the rate charged previously.
They said the price hike in shipping is owing to the “gates crisis” in the port, which have been reserved for ships entering and exiting the port. This is despite the fact that there are nine gates not in use.
Transporters said the problem has to do with the booking of operations that begins at 12 p.m. and leads to the congestion of carriers.
“There is no doubt that the government’s public sector is aware of what is happening at the port,” a private sector investor who preferred anonymity said.
“The crisis has occurred because there is only one port for entry and one for exit. A meeting was held with the Public Ports Authority last week and another was held with the navigation administration to reach a solution,” he added.
“The two gates are insufficient to handle the volume of import operations in the port, which handles 60 to 70 percent of imports to Saudi Arabia.”
Specialists in the transport sector warned of a perpetuation of the crisis at the Islamic port, emphasizing that the situation has become more complicated and that prices will increase at the expense of consumers.
They said the meeting with the president of the Ports Authority was positive and that he promised to solve the problem, but they warned that the crisis does not bode well for the coming season.
Importers say that the shipping crisis, which began more than one month ago, will inevitably lead to price hikes in commodities and that it is the consumers who will be affected at the end of the day.
Container transport fees at Jeddah Islamic Port rocket



