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.