{"id":81511,"date":"2024-10-08T00:00:00","date_gmt":"2024-10-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/10\/08\/liner-shipping-connectivity-fluctuates-in-3q-as-the-region-continues-to-feel-the-impacts-of-red-sea-tensions\/"},"modified":"2024-10-08T00:00:00","modified_gmt":"2024-10-08T00:00:00","slug":"liner-shipping-connectivity-fluctuates-in-3q-as-the-region-continues-to-feel-the-impacts-of-red-sea-tensions","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/10\/08\/liner-shipping-connectivity-fluctuates-in-3q-as-the-region-continues-to-feel-the-impacts-of-red-sea-tensions\/","title":{"rendered":"Liner Shipping Connectivity fluctuates in 3Q as the region continues to feel the impacts of Red Sea tensions"},"content":{"rendered":"

The Liner Shipping Connectivity Index paints a mixed picture for the region in 3Q <\/strong>as Red Sea ports continue to feel the impacts of ongoing conflict<\/strong>, according to recent 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 methodology<\/a>.<\/p>\n

ICYMI-<\/strong> We looked into how Liner Shipping Connectivity declined in regional countries reliant on Red Sea trade in 2Q 2024, with drops seen in the UAE, KSA, and Israel <\/span>in August<\/a>.<\/span><\/p>\n

The UAE recorded the biggest gain<\/strong>, albeit still rising at a sluggish pace, growing by some eight points q-o-q to settle at 304.2 points in 3Q. It also gained one point in the rankings to 15th in this year\u2019s third quarter, after falling a point in the last.<\/p>\n

Saudi Arabia saw connectivity marginally rise this month<\/strong>, gaining some five points q-o-q to 236.9 points in 3Q 2024, after taking the hardest hit last quarter and falling 17 points. The Kingdom maintained its spot in the ranking at 24.<\/p>\n

Israel was the hardest hit:<\/strong> The country\u2019s shipping connectivity fell by some 10 points q-o-q to 79.3 points in 3Q 2024, as regional tensions escalated and Yemen\u2019s Houthis continued to target Israel-linked or Israel-bound shipping in the Red Sea. It has also seen an overall steep drop of over 70 points from 150 points the same time last year. As a result, Israel\u2019s rankings on the index slipped three places in the rankings to 61 globally in 3Q. Israel\u2019s key ports, including the Mediterranean\u2019s Haifa<\/a> and the Red Sea port of Eilat continue to be targeted by Iranian proxies.<\/p>\n

REMEMBER- <\/strong>Maritime security firms raised the risk level for ships calling at Israeli ports in September<\/a>, as terminals face the possibility of missile attacks from Lebanon\u2019s Hezbollah and Yemen\u2019s Houthis. British maritime security company Ambrey assessed the risk to vessels calling at Israeli ports to be \u201celevated,\u201d and top ship industry associations have urged ship operators to \u201climit information access\u201d at Israeli ports.<\/p>\n

Jordan\u2019s connectivity slipped<\/strong>, shedding some eight points q-o-q to 56.3 points in 3Q, with operations at Aqaba port, the country\u2019s only maritime gateway, severely impacted by Red Sea disruptions and escalating regional tensions. The country also fell 12 points in the rankings to settle at 83, its second lowest place in the history of the index.<\/p>\n

Egypt\u2019s connectivity dropped <\/strong>after gaining almost 10 points in the last quarter, dipping by some six points q-o-q to sit at 238 points in 3Q from 244 points in Q2. Egypt held its spot in the country rankings, however, settling at 23 worldwide in terms of its liner shipping connectivity. The decision by major carriers to reroute across the Cape of Good Hope saw Suez Canal transits fall this year, leaving Egypt in a worse state financially. <\/p>\n

Suez Canal revenues have seen <\/strong>a 50-60% drop<\/a><\/strong> \u2014 equivalent to USD 6 bn \u2014 over the past 7-8 months. Back in July, Egyptian Prime Minister Moustafa Madbouly said Suez Canal revenues had dropped to around USD 300 mn a month, down 64.7% from USD 850 mn previously.<\/p>\n","protected":false},"excerpt":{"rendered":"

Egypt, Jordan, and Israel were particularly hit hard this past quarter as tensions continue on the Red Sea<\/p>\n","protected":false},"author":1,"featured_media":81512,"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":[49,39,37,31,123,254,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-81511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-egypt","tag-jordan","tag-ports","tag-saudi-arabia","tag-shipping-maritime","tag-the-macro-picture","tag-uae","wpautop","entry"],"acf":{"mongo_id":"b0ef5cfa-b82c-4335-8de5-88406bfaf7a5","order":"7","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/1552.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Liner 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