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Since the escalation of the Palestinian-Israeli conflict in 2023, Yemen's Houthi rebels have repeatedly attacked ships in the Red Sea waters, causing many international shipping companies to suspend transportation on the Red Sea route. Jordan, a Middle Eastern country, is highly dependent on the Red Sea for its trade activities, and Jordan's import and export trade and supply chain have been affected by the Red Sea crisis.
Aqaba is Jordan's only seaport city, and in the distance is the Israeli port city of Eilat. The Houthis announced that they would prevent merchant ships from all countries from passing through the Red Sea to Israeli ports, and although the port of Aqaba was not targeted by the Houthis, it was also affected by its close proximity to the Israeli port city of Eilat.
Moussa runs a garage and a car parts shop in Aqaba, and every year he orders large quantities of auto parts from abroad and ships them by sea to the port of Aqaba. But shipping in the Red Sea was blocked, and the goods he ordered were not affected considerably. The time it takes to transport goods has increased dramatically, and the cost of transportation has also risen, which has greatly increased the pressure on his business.
According to a report released by a Jordanian think tank, Jordan's imports in 2022 were about $27.3 billion, with one-third of the import activities going through the Red Sea. At the same time, 54 per cent of Jordan's main export resources, including fertilizers and minerals, are transported through the Red Sea.
Therefore, some analysts pointed out that if the Red Sea crisis is not resolved in a short period of time, the high risk it poses will lead to a decline in Jordanian trade activities and supply chain problems, which will have a shock to the Jordanian economy.
Nair Raja, President of the Aqaba Chamber of Commerce in Jordan: It's not just a shipping crisis, the consequences will be much more serious. Panic caused by tensions will lead to investment flight and changes in consumer behaviour, which in turn will affect the development and investment strategies of local businesses. All these changes can trigger negative effects, which can lead to losses for the country's economy.
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Editor: Wang Yifan