Joining us now is Dr. Amr El Samadony, General Secretary of the International Transport and Logistics Division at the Cairo Chamber of Commerce and Chairman of Phoenix Freight Services. Thank you for joining us.
Thank you very much for the kind introduction.
You have said that freight rates jumped 30 to 40% during the tensions, driven by insurance and risk premiums rather than real operating costs. Now that there is de-escalation, how fast do rates actually come down — and does the Egyptian consumer ever see that reflected in import prices?
Rates come down much slower than they go up — a classic case of rockets and feathers. While shipping lines adjust quickly upward, the Egyptian consumer rarely sees an immediate drop. Importers buy inventory months in advance at crisis rates, so it takes around 3 to 6 months for lower freight costs to clear through the supply chain. There's also a sticky margin problem — once retail prices go up, local distributors are hesitant to lower them, often citing currency fluctuations and general inflation to absorb the difference as profit. De-escalation does relieve pressure on the state's foreign currency reserves, but the consumer won't feel it at the supermarket checkout without strict market monitoring.
When carriers raise rates on risk rather than cost, who actually checks that? You've called for a dedicated regulator in Egypt to license operators and prevent excessive pricing during crises. Make that case — and how would investors and shipping lines react to more regulation?
No single entity currently checks crisis-driven risk premiums. Shipping lines operate within a free-market global alliance system, which leaves local importers exposed. What is needed is a unified logistics regulator — not to fix prices, that's an important distinction — but to enforce transparency, license operators based on compliance, and prevent anti-competitive behaviour during geopolitical shocks. Shipping lines will naturally push back, fearing bureaucracy. But if the regulator focuses on facilitation and transparency rather than rigid price controls, it will actually build investor confidence. Global operators generally prefer a predictable, well-regulated environment.
During the Hormuz disruption, Egypt quietly activated something remarkable — cargo landing at Damietta, moving overland to Africa and then across to Saudi Arabia and the Gulf. Is this corridor a crisis workaround or a permanent product Egypt can sell to the world?
It started as a crisis workaround, but it has all the ingredients to become a permanent and premium logistics product. Moving cargo from Damietta overland to Suez and then to the Gulf bypasses maritime checkpoints and offers something global trade values highly right now — alternative routing. But to make it permanent, it cannot simply be a trucking route. It must be backed by seamless digital transit customs — including TIR carnets — and dedicated rail infrastructure, so that transit time is guaranteed and cost-competitive with maritime routes.
Final question for Egyptian exporters and SMEs watching — what single change in cost, procedure, or finance would most improve their competitiveness in the next 12 months?
That is a very difficult question. The situation right now is not entirely clear, and political changes tend to shift everything around them, which makes planning challenging. What I can say is that we are hoping everything stabilises — because without a stable environment, any 12-month plan is hard to commit to. The uncertainty itself is the biggest obstacle right now.
It's been an immense pleasure having you with us. Thank you very much.
Thank you, sir. I appreciate the invitation.
