BusinessMain News

PM urges measures to cope with rising freight costs

By : staff writer

Jordan Daily –  Prime Minister Bisher Al-Khasawneh on Sunday urged the relevant authorities to take steps to mitigate the potential inflationary impact of the regional turmoil caused by the ongoing Israeli assault on Gaza and the situation in the Red Sea.

Al-Khasawneh said in a cabinet meeting that 15% of global trade passed through the Bab al-Mandab Strait, which some transport companies saw as risky due to the Israeli aggression on the Palestinian enclave.

He said the cost of freight has risen sharply, by up to 170% for those coming from Southeast Asia and up to 100% for those from North America and Europe, as well as the fees for insuring imported goods.

He warned that if this persisted, “and we hope it does not,” it would fuel inflation, as the commercial and industrial sectors would pass on the costs to the consumers. “The merchant, rightly, does not perform a social function, but works on the basis of profit,” he said.

He praised the private sector, especially the trade, industry and tourism sectors, for being mostly responsible and keeping the profit margins reasonable. “This is a national sector that we salute for that always,” he said.

Back to top button