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FESCO launches service to Jeddah: new hub for Middle East routes

FESCO launches service to Jeddah: new hub for Middle East routes
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For the first time, FESCO performed a direct ship call to Jeddah, Saudi Arabia's largest port on the Red Sea. For cargo owners, this expands the configuration of routes to the Middle East and provides an additional foothold against the background of instability in the Strait of Hormuz.

FESCO Transport Group has opened a new port hub for its marine container service: the first direct ship call to Jeddah on the Red Sea has been completed. The call took place as part of the FESCO Indian Line West (FIL-W) line, which connects Novorossiysk with the ports of India. After processing in Jeddah, the ship continued its voyage on the FIL-W route and headed for Novorossiysk.

The event is important for the market for two reasons at once. The first is geography: Jeddah adds a way to distribute cargo flows in a region where logistics is sensitive to risks in the sea lanes and sudden freight surcharges. The second is the manageability of supply chains: the more real routing points a carrier has, the easier it is for the cargo owner to keep deadlines and reassemble logistics for a specific contract.

The company emphasizes that the decision to change the geography is related to the request of customers and the actual picture of cargo flows. German Maslov, FESCO's Deputy General Director for the Linear logistics division, outlined the approach directly: further calls to Jeddah will depend on the needs of the senders and the configuration of cargo flows.

A special emphasis is placed on the sustainability of routes. Maslov explained the logic through the current risks in the region:
"Against the background of the situation in the Strait of Hormuz, the use of ports on the Red Sea, including Jeddah, can increase the stability of transport chains and provide cargo owners with additional supply options in the region."

For foreign economic activity and carriers, the practical value of such a step will manifest itself in negotiations on terms and price. Jeddah can work as a hub for the reorientation of offshore areas when entry windows, insurance conditions and tonnage availability change. For cargo owners, this is an argument in favor of scenario planning: to have at least one alternate port option in the region and to agree in advance on the terms of the route replacement in the contract so as not to waste weeks on renegotiations.