Al-Argawy predicted that oil prices would rise, and consequently, freight rates would rise. Supply chains could, of course, be affected by the rising cost of production, especially with the reduction in natural gas production, which could disrupt some production lines. On the other hand, the number of shipments to Egyptian ports in the Mediterranean, such as Alexandria, Damietta, and Port Said, is expected to increase due to the ongoing disruptions in the Red Sea. Therefore, it is imperative to ensure increased operational efficiency and reduced clearance times.
He added that rising oil prices amidst these tensions could lead to an increase in the import bill, which would directly pressure the balance of payments in the short term.
Al-Argawy called for implementing the political leadership's directives to establish dedicated logistics distribution centers for production requirements and strategic goods, making Egypt a global logistics hub, as it is considered a refuge in the current political climate. He pointed out that the proposal represents a fundamental pillar for improving efficiency and reducing costs in supply chains, especially in supply-intensive industries, as well as meeting the need for strategic goods in addition to production requirements, as this simultaneously represents a radical shift towards trade in services with high dollar returns.