Ripple effects: Shipments bound for African, European markets delayed, cancelled or deferred during week-long canal mishap
The recent week-long blockage of the Suez Canal — one of the world’s busiest trade routes — resulted in the cancellation or deferment of a number of shipments of Oman Fisheries that weighed negatively on the company’s first quarter performance.
The publicly-listed company, which is partly owned by the Omani government, revealed in the Directors’ Report for the January — March 2021 timeframe that the Suez Canal mishap was among a number of factors that impacted his performance for the quarter.
“During the second half of March, the accidental blockage of the Suez Canal had forced the cancellation/ postponement/delay of many of the consignments both in the African belt, as well as European markets, resulting in a lower achievement for that month’’, the Chairman stated.
Global trade was severely disrupted when the mammoth containership Ever Given ended up wedged in the waterway connecting the Red Sea with the Mediterranean Sea, leaving ships piled up at both ends of the critical maritime lifeline. The ripple effects of the blockage, which ended on March 29, continue to be felt in global shipping circles.
Despite the impacts, Oman Fisheries Group posted a net profit of RO 75K for the first quarter of this year, as against a loss of RO 153K for the corresponding quarter of 2020.
Total revenue dipped 9 per cent to RO 3.719 million this year, down from RO 4.066 million in Q1 2020. Total expenditure declined 12 per cent to RO 3.702 million in Q1 2021, down from RO 4.219 million last year.
Also weighing on the company’s performance during the first quarter was a “prolonged dip in average oceanic temperatures” that resulted in an overall reduction of pelagic species harvests, particularly mackerel and sardine, the company said. Consequently, these lower outputs impacted the overall catch of its commercial vessel, Al Khair-1, it stated.
Set up by Royal Decree in 1987, Oman Fisheries is owned 24 per cent by the Omani government (represented by Fisheries Development Oman [FDO], an affiliate of Oman Investment Authority) and 24 per cent by Oman Flour Mills, among a large number of other small shareholders.
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