{"id":80114,"date":"2024-08-01T00:00:00","date_gmt":"2024-08-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/08\/01\/shipping-liner-connectivity-fluctuates-as-red-sea-ports-continue-to-grapple-with-tensions\/"},"modified":"2024-08-01T00:00:00","modified_gmt":"2024-08-01T00:00:00","slug":"shipping-liner-connectivity-fluctuates-as-red-sea-ports-continue-to-grapple-with-tensions","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/08\/01\/shipping-liner-connectivity-fluctuates-as-red-sea-ports-continue-to-grapple-with-tensions\/","title":{"rendered":"Shipping liner connectivity fluctuates as Red Sea ports continue to grapple with tensions"},"content":{"rendered":"

<\/strong>The Liner Shipping Connectivity Index paints a mixed picture in 2Q as Red Sea ports <\/strong>continue to feel the impacts of tensions in the region<\/strong>, according to recent <\/a>data<\/a> from the United Nations Conference on Trade and Development\u2019s Liner Shipping Connectivity Index. The index tracks countries\u2019 connectivity to the global containerized shipping network by collating data on the number of direct connections, weekly calls, companies providing services, services available, total deployed carrying capacity, and the size of largest ships received, according to UNCTAD\u2019s <\/a>methodology<\/a>.<\/p>\n

ICYMI- <\/strong>We looked into how Liner Shipping Connectivity declined in regional countries reliant on Red Sea trade in 1Q 2024, with significant drops seen in Egypt, Israel, KSA, and Jordan <\/span>in April<\/a>.<\/span><\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

Israel was among the hardest hit:<\/strong> The country\u2019s shipping connectivity fell by some two points q-o-q to 89.44 points in 2Q 2024 as Yemen\u2019s Houthis targeted <\/a>Israel-linked or Israel-bound shipping<\/a>. It has also seen an overall steep drop of over 44 points from 133.7 points the same time last year. Israel\u2019s key ports, including the Mediterranean\u2019s Haifa<\/a> and the Red Sea port of Eilat<\/a>, continue to be targeted by Iranian proxies, with several incidents reported in June<\/a> alone. As a result, Israel\u2019s ranking on the index dropped one place in the rankings to 58 globally in 2Q.<\/p>\n

Saudi Arabia saw connectivity drop furthest this month<\/strong>, shedding 17 points q-o-q to 231.7 points in 1Q 2024. It also shed almost 40 points y-o-y. The Kingdom also fell one spot in rankings to 24 in this past quarter, yet regardless, maintains a strong global position. <\/p>\n

The UAE dropped by nearly 12 points q-o-q to 296.5 in 2Q<\/strong>, after maintaining a steady incline despite disruptions starting in 4Q 2023, while the index held steady at 307.9. The UAE lost one point in the rankings to 16 in this year\u2019s second quarter, though it maintains the region\u2019s best overall score.<\/p>\n

Congestion at Jebel Ali Port rose sharply this past quarter<\/strong>, as the port looked to support vessels being rerouted around the Cape of Good Hope, according to a statement<\/a> from freight forwarding firm Trans-China Logistics. An increase in vessel arrivals has resulted in inter-terminal lags and weakened operational efficiency, with high yard density at various terminals straining port facilities. So, delay times spiked in May, hitting three to four days, with vessels' arrival-to-berthing wait time reaching up to seven days.<\/p>\n

Jordan showed improvement <\/strong>after it was hit hard<\/a> last quarter, with operations at Aqaba port \u2014 the country\u2019s only maritime gateway \u2014 severely affected by Red Sea disruptions. Jordan\u2019s LSCI rose over 12 points q-o-q to 64.7 in 2Q 2024. The country leaped up in the rankings gaining six places and moving up to 71 globally this quarter, from a low point of 85 globally last quarter. Improvements could be attributed to strategies set up by Jordan in 1Q, namely a task force<\/a>, to handle the sudden drop in volumes at Aqaba.<\/p>\n

Background:<\/strong> The task force urged Aqaba Container Terminal to provide incentives for marine routes that continued to serve Aqaba Port in late January, while also proposing waiving storage fees for shipping providers and owners of empty containers prepared for export. Jordan is dependent on cargo traffic flowing through Bab Al-Mandab to Aqaba port, with some 30% of imports and 20% of exports requiring direct passage through the strait, according to an International Monetary Fund report<\/a>.<\/p>\n

Egypt also fared better this month<\/strong>, showing signs of improvement as the country\u2019s shipping connectivity rose by almost 10 points q-o-q to 244.6 points in 2Q from 235.9 points in 1Q. Egypt gained a spot in the rankings, moving up to 23 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, leaving Egypt the worst off financially. Suez Canal revenues fell<\/a> 64.3% y-o-y in May to USD 337.8 mn, compared to USD 648 mn a year prior. With vessels transiting the canal down to around 1,111 during the month, dropping from 2,396 a year prior.<\/p>\n","protected":false},"excerpt":{"rendered":"

UAE and Israel were particularly hard hit this past quarter as tensions continue on the Red Sea<\/p>\n","protected":false},"author":1,"featured_media":80115,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","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":[255],"tags":[49,39,178,31,123,254,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-80114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-egypt","tag-jordan","tag-red-sea","tag-saudi-arabia","tag-shipping-maritime","tag-the-macro-picture","tag-uae","wpautop","entry"],"acf":{"mongo_id":"2d6bb002-86d8-4a1b-b673-9022a000d2a8","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/7\/2602.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Shipping 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