Suez shipping chaos continues, Jeddah Port waives storage fees for 60 days to help stranded cargo ships

On March 24, Taiwan Evergreen Marine's ultra-large container ship "Ever Given" ran aground in the Suez Canal. The entire ship directly blocked the river surface, causing congestion in both directions.

The congestion in the Suez Canal not only causes shipping congestion, but also affects the supply of oil, vaccines, etc. It is reported that the congestion in the Suez Canal causes losses of US$400 million (about RMB 2.6 billion) per hour.

After many days of efforts by excavators and tugboats and with the "help of God" of high tide, the Ever Given was finally refloated on the 29th and is currently docked in the Great Bitter Lake. Navigation in both directions of the Suez Canal has also been successfully resumed .

Although the waterway has been restored to navigation, according to the Wall Street Journal, the shipping chaos may continue for months. Hundreds of ships stuck in the Suez Canal may have to wait for a long time to pass through the waterway . At the same time, the stranded ships will also face competition for port berths and waterways , and the shipping companies affected will also face huge losses .

In order to help the stranded ships between the Suez Canal and the Red Sea, the Saudi Port Authority (MAWANI) recently announced an initiative that will allow ships to dock and unload containers at the Port of Jeddah. At the same time, the exemption period for container storage fees will be extended from 30 days to 60 days. The initiative will take effect from March 27 for a period of 3 months.

Geographically, Jeddah Port is located about 1,150 kilometers southeast of the Suez Canal , on the east side of the Red Sea, and on an important sea route connecting the Far East, Europe and Africa. The port is also the largest container port in Saudi Arabia, with 62 berths and a throughput of 130 million tons.

The Port of Jeddah said in a statement that the plan reflects Saudi Arabia's efforts to alleviate the impact of Suez Canal congestion on the global supply chain, and also shows that the Port of Jeddah is ready to meet changes and challenges in the international transportation market.

According to the Saudi Press Agency, Jeddah Port has the capacity to accommodate the containers on these stranded vessels without affecting port operations.

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