US embassy cable - 02AMMAN4533

S E C R E T AMMAN 004533 
 
SIPDIS 
 
E.O. 12958: DECL: 08/13/2012 
TAGS: MOPS, ETTC, EPET, PREL, IZ, JO 
SUBJECT: JORDAN: NO INCREASE IN INSURANCE OR SHIPPING 
CHARGES SINCE MARLO ADVISORY 
 
REF: A. AMMAN 4506 
 
     B. AMMAN 3893 
 
Classified By: DCM Gregory L. Berry.  Reasons 1.5 (b) and (d) 
 
1. (c)  Summary.  According to the head of the Jordanian 
Shipping Agents Association, the July issuance of a "special 
advisory" by the Maritime Liaison Office (MARLO) in Bahrain 
has not resulted in an increase in either insurance or 
freight charges for Aqaba shipping.  End Summary. 
 
2.  (c)  Senior Jordanian officials, including in recent 
meetings in Washington, have alleged that the July 8 special 
advisory that the MIF was "planning to resume" maritime 
interception operations in the Gulf of Aqaba had led to an 
increase in insurance and/or freight charges for cargo 
shipped via the port of Aqaba.  The Prime Minister told the 
Ambassador August 5 that it was now cheaper to deliver goods 
to Syrian ports and transport overland to Jordan than to ship 
directly to Aqaba. 
 
3.  (c)  However, Captain Mohammed Dalabieh (please protect) 
the director of the Jordanian Shipping Agents Association and 
former Aqaba Port Director, told econ chief August 11 that 
neither set of costs had been affected by the MARLO advisory. 
 Dalabieh said that approximately four months ago he and the 
Jordanian embassy in London convinced Lloyds and other 
insurance companies to discontinue "war risk" insurance 
surcharges that had been imposed on ships calling at Aqaba 
since military activity began in Afghanistan in October 2001. 
 Shipping lines had been passing these surcharges (which, 
Dalabieh said averaged about usd 4.50 per ton) on to 
shippers.  When the surcharges were ended, the lines only cut 
their rates by about usd 2.00 to 2.50 per ton.  Nevertheless, 
Dalabieh did not believe that the higher costs had affected 
port usage. 
 
4.  (c)  Dalabieh said he understood that a resumption of MIF 
inspections was not likely.  He was more concerned about the 
potential impact on Aqaba port activity of possible military 
action against Iraq.  He said he expected that renewed war 
risk surcharges would result in a cut of about 50 percent in 
ships visiting Aqaba, cutting vital foreign currency earning 
exports of phosphates and potash by at least that much. 
 
5.  (S)  Comment: We are continuing to keep a close eye on 
port traffic to ensure that there are no more surreptitious 
attempts to move illicit shipments out of Aqaba. 
Gnehm