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UNJLC survey comparing Aqaba and Umm Qasr in terms of costs of transportation into Iraq.

UNJLC has conducted a survey on transportation costs from various parts of the world into Iraq through Aqaba in Jordan on the one hand and Iraq’s Umm Qasr port on the other hand.

The main cost elements compared include:

• Sea freight from the port of loading to Aqaba and UAE ports, used for transshipment into Iraqi ports and customary surcharges such as BAF (Bunker Adjustment Factor) and CAF (Currency Adjustment Factor)
• Port and feeder charges comprising all charges from discharge to truck loading in either Aqaba or Umm Qasr
• Trucking charges from port to the three inland destinations of Baghdad, Mosul and Basra

The survey reveals that it has become slightly less expensive to take goods through Umm Qasr than Aqaba. The main reason for this lies in the congestion surcharge applied by the lines for goods going through Aqaba. Due to congestion in Aqaba, liners sometimes prefer to discharge their load in neighbouring ports instead of waiting for a berthing space in Aqaba. The congestion surcharge is to compensate for that cost. Currently the surcharge is $300 per TEU (Twenty Feet Container Equivalent Unit). Since the comparison is based on 40’ container the surcharge is $600. In addition to the surcharge, the congestion in Aqaba causes delays for days or weeks.

The survey also reveals that the feeder cost from UAE to Umm Qasr is very high, $1,100 for 40’ container. The cost is $700 higher compared to feeder cost for shipments to Kuwait.

Due to the inspection at sea by the interception forces ships to Umm Qasr are delayed by two days on average and are not allowed to stow more than 60% on average. In case the ships were not subject to the inspection the feeder cost could be reduced by 50%, to $550 for a 40’ container

The survey concludes that in the absence of congestion in Aqaba and sea inspection of goods to Umm Qasr the cost of using these two alternative corridors for goods destined for Baghdad would be roughly the same. Bringing goods to Basra via Aqaba would cost $1000 more than via Umm Qasr and $300 more than shipping them through Mosul.

Disclaimer:

This survey is based on information obtained from a wide range of industrial companies. The survey does not include insurance costs and various associated services provided by freight companies. All costs are estimated costs.