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Saudi Arabia has long faced bottlenecks in the transportation of imported goods. L415M steel, Although it has made several attempts to improve port services, the recent severe congestion at Dammam and Jeddah ports has once again sparked discussions about systemic reforms.
Industry insiders report severe delays in import supplies. Both Jeddah and Dammam ports are experiencing significant congestion. L415M steel, This port congestion is further driving up freight costs. Market participants indicate that a vessel that arrived on August 28th has yet to berth and unload its cargo. Shipowners are largely unwilling to accept Saudi shipments because vessels often remain in port for over a month, incurring additional costs of $5-7 per ton.
Despite attractive imported steel prices, lengthy customs clearance cycles have hampered competitiveness. Egyptian suppliers, primarily dealing in wire rod, are reportedly facing significant difficulties clearing customs in Jeddah, with the clearance time extending from one week to 45 days.
This has a significant impact on the steel industry. Delays could slow down the arrival of billets, scrap steel, and other raw materials, directly affecting steel mills' production plans. L415M steel, Meanwhile, traders point out that persistently high logistics costs are further squeezing already limited profit margins and increasing uncertainty in price negotiations.
Industry insiders warn that if bottlenecks are not resolved, Saudi steel mills will face the risk of supply instability and rising costs, which will weaken their competitiveness as regional demand recovers. The current situation highlights the steel supply chain's reliance on logistical efficiency and underscores the urgency of reforming port operations.
