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Home International Customs

Saudi shipping line suspends port calls as Yemen conflict worsens

byCustoms Today Report
13/04/2015
in International Customs
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RIYADH: Saudi Arabia shipping line are forced to suspend port calls to Yemen as the conflict gets worse, putting pressure on supplies of food as prices rise in local markets.
Saudi Arabia and Arab allies have launched air strikes against the Iran-allied Houthi movement, which has taken most of the country and forced President Abd-Rabbu Mansour Hadi to flee to Riyadh.
The coalition has deployed naval vessels to intercept ships carrying arms to the rebels, although merchant ships are meant to have free passage.
Most ports appear to be under Houthi control or are disputed by combatants. Many shipping companies are now unwilling to risk their vessels, industry sources say.
“Many of the owners and container lines are refusing to go to Yemen. You can still call at a number of ports but the fear factor is growing,” an international commodities trade source involved in Yemen said.
The world’s largest global shipping association, BIMCO, said: “If a port is taken/held by the Houthis and a ship is seen to be supplying the rebels, the ship could be at risk from air strikes or indeed naval action from the coalition.”
Another commodities trader said his vessel carrying wheat was held up for days by coalition ships before being allowed through into Yemen. The impact is being felt by local people in the Arab world’s poorest country.
“The price of a 50 kg bag of wheat has risen from 5,000 Yemen rials ($23) to 6,300 rials,” said Muhammad Saad, 37, from the capital Sanaa, which is under Houthi control. “People are buying wheat in big quantities because they fear shortages.”
Fahd al-Dhabhani, a government employee from Sanaa added: “We are living a disaster from all sides. The price of wheat and flour have risen in a big way. There is no more petrol even on the black market.”

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