JEDDAH: The perceived risk to shipping through the Bab Al-Mandab Strait exceeds the actual threat, while container volumes entering the port have returned to levels close to those recorded late last year, a senior Red Sea Gateway Terminal executive said on Wednesday.
Karim Omran, vice president, group commercial, at the Jeddah-based operator, told Arab News that major carriers’ decisions to return to the route informed his assessment.
He told Arab News: “Major shipping lines, including CMA CGM, Maersk and MSC, have announced that they are returning to the strait.
“My current assessment is that the perception of risk is higher than the actual risk, because I assume these large organizations would not pass through if the risk were high.”
Container volumes entering the port were “almost at the same levels as in the fourth quarter of last year,” Omran said, adding: “That indicates that trade is continuing to flow.”
Shipping lines had adapted their networks and developed contingency plans to maintain services, he said, adding: “When we speak to shipping lines, most are flexible enough and have already developed alternative plans. They cross Bab Al-Mandab, establish their networks and have a backup plan.”
Operators are incorporating uncertainty into their planning, including the possibility of disruption to the strait.
Omran said: “Everyone is adapting to this new normal of potential risk. They plan for a possible closure, even though there is no closure at present.”
His comments came as security incidents continued to affect transport across the region.
The Saudi-led coalition said Saudi air defenses intercepted and destroyed five explosive-laden drones launched toward Madinah and the eastern regions. No casualties or damage to vital installations were reported.
Coalition spokesman Maj. Gen. Turki Al-Maliki described the attacks as a flagrant violation of international humanitarian law and said the coalition was taking firm measures to counter them.
King Khalid International Airport in Riyadh reopened to limited domestic traffic on Wednesday for the first time since its closure on Oct. 10. Saudia and Flynas resumed operations, while two European carriers maintained suspensions until mid-November.
Elsewhere, a projectile caused a fire on a tanker in the Gulf, about 11 nautical miles off Bukha, Oman, on Wednesday. The fire was extinguished, and the crew was reported safe.
Omran spoke after taking part in a Saudi Maritime and Logistics Congress panel examining what persuaded shipping lines and cargo owners to commit business to a port.
He was joined by Jay New, CEO of King Abdullah Port, and Mohamed Badawy, chief operating officer of Folk Maritime.
Omran highlighted during the discussion the continuing importance of competitive pricing alongside a terminal’s wider network advantages.
Shipping lines often returned to a direct commercial question, he said: “I don’t care about all this. How much discount can you give me?”