Although no serious disruptions have been experienced in Saudi Arabia’s logistics operations with only some delays reported, concerns among steel market players continue to grow as cargo ships may also be affected if the situation becomes worse.
The Saudi Arabian authorities have recently suspended passenger maritime connections, excluding cargo, between the Kingdom and a number of countries as a precautionary measure amid the spread of the Covid-19 virus. The list contains 50 countries, including the 27 EU states. Others include the United Arab Emirates, Kuwait, Bahrain, Oman, Iraq, Lebanon, Syria, Egypt, South Korea, China, Switzerland, India, Pakistan, Turkey, Eritrea, Sri Lanka, Ethiopia, Kenya, Sudan, Djibouti, Somalia, Southern Sudan, and the Philippines.
Although the regulation concerns only human travel with cargo shipping operation not yet being affected, steel market insiders are still concerned. “It is a gray area still as no one knows how things will develop. No one knows if we will be receiving our cargoes or not,” a producer told SteelOrbis.
In terms of inland transportation, there are some issues with the truck deliveries, from Oman and Bahrain specifically. Some sources report that supplies from Oman to Saudi Arabia have completely stopped for now, while others report that there are some issues with the paperwork required to cross the borders. In the meantime, some UAE-based suppliers say the issue is not yet serious with only some minor disruption witnessed.