{"id":78081,"date":"2024-04-23T00:00:00","date_gmt":"2024-04-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/04\/23\/regional-liner-shipping-connectivity-falls-amid-red-sea-disruptions\/"},"modified":"2024-04-23T00:00:00","modified_gmt":"2024-04-23T00:00:00","slug":"regional-liner-shipping-connectivity-falls-amid-red-sea-disruptions","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/04\/23\/regional-liner-shipping-connectivity-falls-amid-red-sea-disruptions\/","title":{"rendered":"Regional liner shipping connectivity falls amid Red Sea disruptions"},"content":{"rendered":"

Liner Shipping Connectivity declined in regional countries reliant on Red Sea trade with significant drops seen in Egypt, Israel<\/strong>, KSA, and Jordan<\/strong>, according to data<\/a> from the most recent update of the United Nations Conference on Trade and Development<\/a> \u2019s (UNCTAD) Liner Shipping Connectivity Index (LSCI). The index tracks countries\u2019 connectivity to the global containerized shipping network by collating data on direct connections, weekly calls, companies providing services, services available, total deployed carrying capacity, and the size of largest ships received, according to UNCTAD\u2019s methodology<\/a>. The notable drops in regional connectivity performance between Q4 2024 and the present correlates with Houthi-related Red Sea attacks, which began in the previous year\u2019s final quarter and saw most of the world\u2019s major carriers reroute shipments<\/a> away from the Red Sea. <\/p>\n

Israel was also among the hardest hit regionally:<\/strong> The country\u2019s shipping connectivity plummeted 43.78 points q-o-q to 91.31 points in Q1 2024, with Yemen\u2019s Houthis particularly targeting Israel-linked or Israel-bound shipping<\/a>. Israel\u2019s chief Mediterranean ports at Ashdod<\/a> and Haifa<\/a> have also been targeted by Iranian proxies in recent months. As a result, Israel\u2019s ranking on the index dropped 19 places, to 57 in Q1, from 38 in Q4. <\/p>\n

Jordan was also hard hit, with operations at Aqaba port \u2014 the country\u2019s only maritime <\/strong>gateway \u2014 severely affected by Red Sea disruptions. <\/strong>Jordan\u2019s LSCI shed some 20 points q-o-q to 52.13 in Q1 2024, with the same period seeing the country drop 19 spots in rankings to 85. The country set up a task force, which includes the Jordan and Amman Chambers of Commerce, the Jordanian Navigation Syndicate, and the Jordanian Logistics Association, to handle the sudden drop in volumes at Aqaba. The task force urged Aqaba Container Terminal to provide incentives<\/a> for marine routes that continue to serve Aqaba Port in late January, while also proposing waiving storage fees for shipping providers and owners of empty containers prepared for export.<\/p>\n

Saudi Arabia also saw poorer connectivity since disruptions started,<\/strong> shedding 43.26 points q-o-q to 248 points in Q1 2024. The Kingdom also fell 5 spots in rankings to 23 globally in this year\u2019s first quarter. <\/p>\n

Egypt did better in terms of connectivity than other countries on the Red Sea,<\/strong> but was the worst off financially as Red Sea disruptions slashed Suez Canal receipts. Egypt fell only two spots in rankings between Q4 2023 and Q1 2024, settling at 22 worldwide in terms of its liner shipping connectivity. However, the decision by major carriers to reroute across the Cape of Good Hope saw Suez Canal transits fall by some 40%. If disruptions persist throughout this year, the country could lose USD 3.5 bn in FX revenues in 2024<\/a>, equivalent to about 10% of net international reserves and half of its import bill.<\/p>\n

The UAE seems to have seen some modest benefits from Red Sea disruptions, <\/strong>with the country gaining one spot in rankings to 56 globally since disruptions started in Q4 2024, while its index held steady at 307.9. UAE ports on the Persian Gulf and the Arabian Sea are displaced from the Red Sea and were thus unaffected in terms of the GCC\u2019s substantial containerized trade with Asia. Moreover, the UAE\u2019s bunkering hub at Fujairah saw record sales in March<\/a>, on the back of a boost in demand attributed to reroutes.<\/p>\n","protected":false},"excerpt":{"rendered":"

Jordan + Israel were particularly hard hit<\/p>\n","protected":false},"author":1,"featured_media":78082,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[305],"tags":[304,37,178,123,32],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-78081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-macro-picture","tag-macro-picture","tag-ports","tag-red-sea","tag-shipping-maritime","tag-trade","wpautop","entry"],"acf":{"mongo_id":"ebc3f46a-8ccb-49d2-a55d-315e3b4a6496","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/3\/1827.jpg","photo_position":"above","homepage_title":"Regional liner shipping connectivity falls","full_issue_title":"Regional liner shipping connectivity falls amid Red Sea disruptions","related_issue":[78073],"teaser":"Jordan + Israel were particularly hard hit","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/4\/.c3e66770-22ce-43ff-b7b0-618bf4388615.mp3"},"yoast_head":"\nRegional liner shipping connectivity falls amid Red Sea disruptions - 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