‘Massive’ container shortage affects supply of primary commodities — chambers of commerce

AMMAN — The unprecedented rise in the prices of ocean freight owing to a “massive” container shortage “will pile pressure on the prices of goods imported to the Kingdom”, according to representatives of chambers of commerce. 

“The worldwide container shortage crisis has been exacerbated by the pandemic and its prolonged recovery process. The crisis’ impact will remain for substantial periods, without having any positive indications showing that the elevated freight rates would decrease anytime soon,” said Nabil Al Khatib, vice president of the Amman Chamber of Commerce.

Voicing his concern that such situation would significantly affect the supply of primary commodities and the prices of consumer goods, the ACC vice president stressed that “immediate action needs to be taken”.

A 40ft shipping container coming from China to Aqaba port used to cost $2,000, and for six months now the price has become $10,000, in addition to increases in customs duty on imported goods, Khatib told The Jordan Times. He noted that custom duties are calculated on the basis of the value of the goods, shipping costs and insurance.

Chairman of the Board of Jordan Chamber of Commerce (JCC) Nael Kabariti told The Jordan Times that freight rates accounted for 5 to 10 per cent of the value of the goods, but now shipping expenses, in some cases, are even higher than the price of the goods.

“The JCC works continually with relevant authorities which demonstrated their cooperation,” Kabariti said, adding that the soaring container freight rates would affect the prices of many imported goods including: Raw material, foodstuff and clothes. 

Both representatives called on competent authorities to be mindful of the current situation in ocean freight and its impact on the availability and prices of goods imported to the Kingdom, stressing the need to adopt “acceptable, encouraging and logical” prices when charging custom duties.

The number of containers that enter Jordan annually is around 500,000, while 120,000 containers loaded with goods leave the Kingdom, according to Khatib who also noted that “now a container takes up to 90 days until it arrives to its destination”.