After American-British attack on Yemeni sites, the Red Sea Basin is facing a crisis that exacerbates economic problems at the global, regional and local levels.
It is known that 80 percent of global trade passes through marines, and about 12 percent of it passes through the Red Sea, mainly about 7 million barrels of oil per day, in addition to the imported food on which the countries of the region depend on, and exports of fertilizers, industrial products, and others.
The Red Sea considered as one of the safest international waterways, and many countries in the region have made plans to shift to Red Sea ports as an alternative to other corridors that have witnessed, and are expected to witness, tensions that threaten to halt the movement of goods, including the Arabian Gulf region, which was greatly affected by the wars that broke out in the region, in addition to The conflict in the China Sea, especially the Gulf of Taiwan, and the weather fluctuations usually hitting the Gulf of Mexico, the largest oil production and export platforms in the world.
But the Red Sea has turned into a source of threat since the Israeli aggression against Gaza on November 7, 2023. This threat developed after the Houthis’ attempts to prevent ships heading to Israeli and reached its peak at dawn on January 12 of the current international aggression against Yemen.
At the global level, sea freight costs have increased about three times, depending on the destination of the container. Delivery time has also increased between 15 to 20 days, depending on the destination, and the cost of risk-related insurance has increased, which leads to an increase in the cost of materials, which the importer often reflects on the final selling price and put new burdens on the consumer Sholders. It generates new inflationary pressures after the global economy suffered the consequences of absorbing inflationary pressures in the last two years, as these measures led to an increase in interest rates.
Regionally, there are about 20 countries that use the Red Sea as the first waterway for their exports or the last waterway for their imports. These were directly affected by the Red Sea crisis, but these countries have other alternatives on the waterways and can overcome the problem of maritime shipping.
Jordan, at the local level, is one of the most affected countries. From the north, export through Syria were disrupted after the Arab Spring, and the export of many materials through the Red Sea, Jordan’s only sea lane to the west and east of the world, and the artery through which most imports and exports of fertilizers and clothing pass that heading to the American market.
The Western world, instead of addressing the essence of the crisis, with a ceasefire from the Israeli side, and reaching a just and comprehensive solution for the Palestinian issue, the central issue of the conflict in the Middle East, is trying to address the symptoms of the problem instead.
His Majesty King Abdullah II has warned, many times and through many international and regional platforms, that leaving the Palestinian issue without a solution will fuel conflict in the region and fuel extremism, the manifestations of which have begun to threaten regional security and stability and disrupt the arteries of global trade.
by Fayeq Al-Hijazin
