“The local market will soon feel the impact of soaring container freight rates” | Business
Ammon news – According to Amman Chamber of Commerce (ACC) vice president Nabil Khatib, the local market is expected to feel the heat due to the rise in global container freight rates, which have jumped an unprecedented 400% since the start of 2021.
He told Petra on Saturday in an interview that the authorities concerned “should be aware of this problem and adopt reasonable prices when calculating tariffs, which would help reduce the costs of goods imported into the local market.”
According to Khatib, the cost of shipping a 40-foot container from China to the port of Aqaba has risen from $ 2,000 six months ago to around $ 10,000 now, an increase of $ 8,000 or more. 400%.
He pointed out that the impact of rising sea freight rates will trickle down to the prices of imported items in the local market as customs duties are calculated on the value of goods, freight and insurance costs.
Jordan imports around 500,000 TEUs each year, compared to 120,000 exports.
Khatib said sea freight rates have started registering “sky-high” increases since the start of the current year with no positive indication that the crisis could end anytime soon.
“The global shipping industry is currently suffering from a severe crisis due to a shortage of containers, which has resulted in a significant increase in shipping costs, in addition to the delay in receiving the goods purchased, in particular those from China, ”said the ACC vice president.
Citing international reports, Khatib noted that the “patchy” recovery from the coronavirus pandemic is another factor in the rising shipping costs, adding that there are global concerns that the rise in freight rates could be extend indefinitely.
He also pointed out that the massive backlogs of empty containers in European and US ports and the build-up of charges have forced shipping companies to abandon these containers after finding that the charges incurred are much higher than the costs.