Egypt strife spills over into Suez concerns

The effects on SA trade due to the unrest in Egypt are liable to be minor, according to Duncan Bonnett, trade specialist with consultants Liz Whitehouse & Associates. From an examination of his statistics, he said: “It’s not a big trading partner of ours, not even in the African context. “So any direct impact on SA trade will be minimal.” But an indirect effect, caused by disruption of neighbouring ports in the East Mediterranean region and of the vital trade link, the Suez Canal, is beginning to look likely. Egypt’s problems follow political strife in Lebanon, Yemen, and earlier this month Tunisia. That has led to a general wariness about the region. Egyptian ports are closed – or operating at sharply reduced capacity, with a militarily imposed curfew slowing loading, according to shipping agents – and container vessels have begun to be rerouted to avoid the nation. Also, with the embattled Mubarak government imposing curfews in Cairo and other cities, workers faced major hurdles in reaching terminals and offices and maritime companies shuttered offices. According to Bruce Barnard of the US Journal of Commerce: “The continued security of the Suez Canal is a concern, and the potential exists for port disruptions to occur throughout the region.” The Suez Canal is one of the world’s most heavily used shipping lanes, and one of Egypt’s main sources of foreign currency. The 190-kilometre canal is a key transit route for crude oil shipments from the Gulf region. But, while the Suez Canal has remained open to vessel traffic, DP World suspended operations near Cairo as mass protests against President Hosni Mubarak grew in Egypt’s capital. The Danish port operator, AP Moller- Maersk, has also closed its Suez container terminal at Port Said, and the offices of its Maersk Line, Safmarine and Damco subsidiaries in Egypt. “APM Terminals container terminal in Port Said is not operating, however a skeleton crew is manning the reefer containers and IT systems,” the company said. Also, internet reports said that Hanjin Shipping was one of the first container lines to publicly announce changed operations because of the unrest in Egypt. Meantime, Cairo International Airport is in turmoil as people try to flee the trouble-torn country and airlines cancel flights. Air transport, however, is still hiccupping in and out of the airport – the second-largest in Africa after Johannesburg, and handling roughly 16 million passengers a year.