Aramex looks to Dubai and Dammam as Red Sea disruption continues

Othman Aljeda, Chief Executive Officer, Aramex, has revealed that the firm is using its vast fleet of trucks to minimise the effects of shipping disruption since Yemen’s Houthi rebels began attacking commercial vessels in late November. 

Some experts have suggested that shipping costs increased by as much as 250% in the weeks following the attacks. T&FME was told recently by a leading Ro-Ro firm that they were one of only two companies able to get vehicles and equipment from Europe into the region via cargo ships.

Many shipping companies are now sending freight from Europe around Africa’s Cape of Good Hope – a lengthy and problematic route that continues to be affected by pirates operating in the Indian Ocean. According to the annual Piracy and Armed Robbery Report of the ICC International Maritime Bureau (IMB), there were 120 incidents of maritime piracy and armed robbery against ships reported in 2023, compared to 115 in 2022.

During its full year results meeting, Aramex’ Aljeda said his company was now using hubs in the Arabia Gulf to serve customers.

“While Freight Forwarding continues to pose challenges globally, we turn our attention to the situation at the Red Sea, where we are closely monitoring the current shipping disruption,” he said.

“With a large trucking fleet in the region, we are supporting our clients with alternative solutions. We are deploying our trucks via Dubai, United Arab Emirates and via Dammam, Saudi Arabia for the onwards journey of shipments arriving from Asia and via Port Said, Egypt for the onwards journey of shipments arriving from Europe.”