Rising shipping costs to Israel amid conflict and Houthi attacks
PORTS & SHIPPING

Rising shipping costs to Israel amid conflict and Houthi attacks

The recent days have seen an increase in the shipping costs of goods to Israel by sea, with some container lines withdrawing and others introducing additional surcharges. This is contributing to supply chain challenges for the country amid the conflict in Gaza, according to shipping sources.

Israel, heavily dependent on seaborne trade, had announced in October that it would compensate for ships damaged during the conflict with the Hamas group. However, it has not specified whether it will cover additional shipping expenses.

Houthi militants in Yemen, backed by Iran, have intensified attacks on vessels in the Red Sea to express support for Hamas following the onset of Israel's military offensive in Gaza. In response, some shipping companies have rerouted sailings around the Cape of Good Hope or suspended transits through the Red Sea. The attacks have added pressure to companies still providing sea transport to Israel.

The Houthis have expanded their target criteria to include vessels that were no longer associated with Israel, according to British maritime security company Ambrey.

Ocean freight rates from various Chinese ports to Israel rose to over $2,300 for a 40-foot container by December 12, compared to around $1,975 at the end of November, according to analysis from global freight platform Freightos. Freightos CEO Zvi Schreiber noted that the route around Africa is significantly longer and incurs higher fuel costs compared to the Suez Canal route.

Evergreen Line and OOCL have temporarily stopped accepting Israeli cargo due to operational issues, while AP Moller-Maersk has imposed an emergency risk surcharge for all cargo discharged at Israeli terminals.

The recent days have seen an increase in the shipping costs of goods to Israel by sea, with some container lines withdrawing and others introducing additional surcharges. This is contributing to supply chain challenges for the country amid the conflict in Gaza, according to shipping sources. Israel, heavily dependent on seaborne trade, had announced in October that it would compensate for ships damaged during the conflict with the Hamas group. However, it has not specified whether it will cover additional shipping expenses. Houthi militants in Yemen, backed by Iran, have intensified attacks on vessels in the Red Sea to express support for Hamas following the onset of Israel's military offensive in Gaza. In response, some shipping companies have rerouted sailings around the Cape of Good Hope or suspended transits through the Red Sea. The attacks have added pressure to companies still providing sea transport to Israel. The Houthis have expanded their target criteria to include vessels that were no longer associated with Israel, according to British maritime security company Ambrey. Ocean freight rates from various Chinese ports to Israel rose to over $2,300 for a 40-foot container by December 12, compared to around $1,975 at the end of November, according to analysis from global freight platform Freightos. Freightos CEO Zvi Schreiber noted that the route around Africa is significantly longer and incurs higher fuel costs compared to the Suez Canal route. Evergreen Line and OOCL have temporarily stopped accepting Israeli cargo due to operational issues, while AP Moller-Maersk has imposed an emergency risk surcharge for all cargo discharged at Israeli terminals.

Next Story
Infrastructure Urban

bauma Inspires Progress

bauma reaffirmed its position as the heartbeat of the construction machinery industry. With 6,00,000 visitors and 3,601 exhibitors, the event spotlighted sustainability and digitalisation. Amid global challenges, it fuelled optimism, and future-ready solutions...

Next Story
Infrastructure Urban

IMPACCT.Info: AI Powered Business Intelligence

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read the full article Click Here ..

Next Story
Equipment

Better Concrete Handling

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select WellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?